Micron’s bleak outlook is only getting worse

Micron’s bleak outlook is only getting worse

It’s in chaos, and it’s falling apart. Micron is now the next victim of Intel’s disaster, and Nvidia is following suit. The June forecast was already in decline and is being revised downwards. It will remain that way for the next months. More adjustments will be made.
Sales decline leads to savings.

Micron has now placed its fourth quarter fiscal 2022 forecast on unstable ground. This means that even though it was dismal, it will not come to fruition. Analysts had previously forecast revenue of $9.1billion before the crash. However, Micron cautioned in June that they could only expect a payment of $7.2billion.

This value continues to decline at the lower end or below what the quarter is currently expected to develop. That would translate to roughly $6.8 billion in annual sales. The company expects further declines for the first quarter of the fiscal year 2023 at Micron. This would mean that it will be worse than the current quarter. The company expects that even free cash flow will fall into negative territory.

Bit transmissions will continue to fall sequentially in FQ1. We expect substantial sequential declines in revenue and margins. FQ1 will see negative free cash flow.

Micron is adjusting its spending to avoid falling into the abyss of 2023. Micron is reducing the purchase of wafer fab equipment (WFE), and the CAPEX value for the fiscal year 2023 will be significantly lower than 2022.
Others are likely to follow suit.

Acer’s boss also warned that this would happen in Asia today. It is important not to underestimate statements and figures made by industry giants like Nvidia, Intel, and Micron. Other companies will likely follow suit, depending on where they are in the supply chain. Micron is still engaged in inventory adjustment or the adjustment of inventories to current market conditions, and this will not stop at any one group.

Micron’s bleak outlook is only getting worse
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