Micron Slides After Memory-Chip Maker Delivers Weak Forecast
- Outlook suggests demand has slowed from PC manufacturers
- Micron is coming off record year, fueled by broader chip boom
Micron Technology Inc., the largest U.S. maker of memory chips, fell in early trading Wednesday after reporting that slowing demand from personal-computer makers is weighing on its forecast for sales and profit.
Sales will be about $7.65 billion in the period ending in November, Micron said Tuesday in a statement. That compares with an average analyst estimate of $8.57 billion, according to data compiled by Bloomberg. Excluding certain items, profit will be $2 to $2.10 a share, compared with a projection of $2.56.
The dimmer outlook suggests that slowing demand among PC makers is taking a toll. The memory chip industry is known for its dramatic boom-and-bust cycles, which make earnings hard to predict. But Micron Chief Executive Officer Sanjay Mehrotra has argued that the wild swings between shortages and gluts have moderated because a wider variety of devices use the company’s chips now.