Micron Technology Inc. shares tumbled on Friday after the chipmaker gave a forecast for both earnings and gross margins that was below expectations. The company’s chief executive officer also warned about the impact that global trade tensions were having on its business.
Despite the cautious commentary, many analysts suggested that the worst may be over for the company, seeing signs of a trough in the market for memory chips. As Credit Suisse wrote, this was “a messier bottom, but still a bottom.” Barclays said that while the quarter’s results didn’t represent “the perfect start to the recovery,” they did indicate that the memory market “does seem to be heading to a better place.”
