Micron Technology (NASDAQ:MU) shares rose on Tuesday even as financial investment organization Barclays stated weak pricing in each the dynamic random access memory and NAND markets could result in the company to skip third-quarter estimates and supply weak guidance.
Analyst Tom O’Malley, who rates Micron (MU) shares chubby, lowered his selling price focus on to $75 from $105, noting that client marketplaces are weakening, which has performed a sizeable job in the weak point of DRAM and NAND. NAND spot pricing has fallen 8% over the earlier quarter, though DRAM is down 12%.
Micron (MU) shares rose a lot more than .5% to $59.11 in premarket buying and selling on Tuesday.
O’Malley conceded that there have not been any indications of weak point in the info centre just but, but there is the likelihood for that to transpire later on this calendar year.
The analyst also observed that Micron (MU) has ongoing to lead the business in expense declines on the front conclusion, but continued difficulties with the provide chain, these kinds of as greater fees for freight, are possible to “weigh on the back end” and make value declines “far more difficult.”
Micron (MU) is scheduled to report 3rd-quarter earnings soon after the close of buying and selling on Thursday and analysts anticipate the firm to make $2.45 for every share on $8.66B in product sales.
Very last week, expenditure organization Wells Fargo minimize Micron’s (MU) estimates ahead of the semiconductor firm’s third-quarter results.