Micron's Loss Guidance Overshadows Better-Than-Expected Results
Portfolio Pulse from Upwallstreet
Micron Technology Inc (NASDAQ:MU) has guided for a wider than expected first-quarter loss, causing its shares to drop 2.4%. The company is working to become a supplier to Nvidia Corporation (NASDAQ:NVDA), a leader in the AI market. Micron's fourth quarter revenue topped estimates but still marked a 40% drop due to a security review by China's Cyberspace Administration. The company expects a positive gross margin in the second half of fiscal 2024.
September 28, 2023 | 3:03 pm
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POSITIVE IMPACT
Nvidia Corporation could support Micron Technology's recovery as the latter is working to become a supplier to Nvidia. Nvidia's chips have become crucial for AI development, fueling its stock to rise 187% year to date.
Nvidia's strong position in the AI market and its potential partnership with Micron could positively impact its stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Micron Technology's shares dropped after the company guided for a wider than expected Q1 loss. The company is working to become a supplier to Nvidia, which could support its recovery.
Micron's wider than expected Q1 loss guidance has negatively impacted its stock price. However, its potential partnership with Nvidia could support its recovery in the long term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100