Micron Q1: Downward Revisions Reset Valuation Multiples, Expecting Demand Recovery In H2 FY2025
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Micron's Q1 FY2025 earnings report led to a selloff due to lower-than-expected 2Q guidance. Weak demand in consumer markets affected NAND revenue, but a demand recovery is expected in the second half of FY2025. Gross margin pressure may continue into Q3 FY2025.
December 23, 2024 | 10:00 am
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Micron's Q1 FY2025 earnings report led to a selloff due to lower-than-expected 2Q guidance. Weak demand in consumer markets affected NAND revenue, but a demand recovery is expected in the second half of FY2025. Gross margin pressure may continue into Q3 FY2025.
The sharp selloff in Micron's stock was triggered by the company's Q1 FY2025 earnings report, which included a 2Q guidance significantly below market estimates. This was due to weak demand in consumer markets affecting NAND revenue. Although a demand recovery is expected in the second half of FY2025, the immediate impact is negative due to the current revenue and margin weakness.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100