LogInThe company warned investors that its revenue won’t meet previous projections amid weakening demand for chips used in PCs and smartphones.
Semiconductor manufacturing company Micron reported on Tuesday that the financial results for the third quarter of 2022 may be below its initial forecasts.
The company provided an update on its business conditions in a filing with the Securities and Exchange Commission saying that it has recently seen a "broadening of customer inventory adjustments" due to "macroeconomic factors and supply-chain constraints."
The manufacturer explained that financial performance has declined amid falling demand for NAND and DRAM chips. The company expects "a challenging market environment" to continue in Q4 2022 and Q1 2023.
Against the backdrop of this statement, Micron's shares and the Philadelphia SE Semiconductor index fell by 5.7% and 4.3% respectively. The announcement that the company is investing $40 billion to expand US chip manufacturing through 2030 has not helped stabilize the value of the stock.
The manufacturer expects its fourth-quarter revenue to "come in at or below the low end of the revenue guidance range" the company provided during the earnings call in late June. At that time, Micron forecasted its revenue for the quarter to amount to between $6.8 billion and $7.6 billion.
Micron announced a possible drop in revenue the day after NVIDIA reported a sharp decline in sales of gaming graphics cards.
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