Shares of Micron Technology Inc. (NASDAQ:MU), a maker of dynamic random access memory chips used mostly in computers, declined after UBS analysts recommended that investors sell the stock, citing “cyclical memory concerns and big estimate cuts.”
The shares dropped 6.9% to US$49.68 at 3:04 p.m. The Sell rating comes amid UBS’s initial coverage of the company.
READ: Micron Technology stock falls on second quarter results
“The supply chain” of the semiconductor industry in general “has struggled to keep inventory growing close to revenue growth” during the past four quarters and for all of 2017, UBS wrote in a research note.