Micron, a major US memory manufacturer, continued to give a bleak outlook on Tuesday (9th), first lowering its adjusted revenue in the fourth quarter to the low end of the previously estimated range, with a more conservative view than before, and then reassessing its 2023 accounting The free cash flow in the first quarter of the year was negative, and the stock price of US CD-ROM fell more than 4% due to the impact of the double negative impact.
Micron originally estimated that the adjusted revenue in the fourth quarter was $7.2 billion, with a difference of regarding $400 million, but this time it gave a revenue date at the low end of the range of $6.8 to $7.6 billion, which was lower than market estimates. of $7.26 billion, a further sign that demand from the personal computer (PC) and gaming industries is weakening.
At the same time, Micron also forecasts negative free cash flow in the first quarter of fiscal 2023, and that revenue and profits may fall sharply in the quarter due to lower shipments. Before the deadline, Micron (MU-US) fell 4.48 percent to $58.70 per share.
Micron announced earlier the same day that it plans to invest $40 billion by the end of 2030 to build a “cutting-edge memory manufacturing” business in the United States in stages. The investment will create up to 40,000 jobs, including 5,000 highly paid technical and operational staff. Micron’s memory production in the United States accounts for 2% of the world’s memory production, which will increase to as much as 10%.
Micron said in a statement that with the subsidies and rewards expected from the Chip Act, this investment will manufacture the most advanced memory in the United States. It is also called the largest investment in the United States in history. Production will begin in 2030, although specific expansion plans are still being discussed, with more details to be revealed in the coming weeks.
