How Low Can Micron Technology Stock Go?
The market has been sniffing out a cyclical downturn for the semiconductor industry for a while now, and memory-chip maker Micron Technology (NASDAQ: MU) is finally confirming that it's here. Micron did report record annual revenue for its recently completed 2022 fiscal year ($30.8 billion, an 11% increase from 2021), but the final quarter of the year (ended Sept. 1) was a dud. Things aren't going to get much better to kick off fiscal 2023.
Ahead of this tumble in sales, Micron's stock price tanked 44% so far in 2022. How much farther will it fall before the market gets wind of the next memory chip bull run?
Micron's Q4 fiscal 2022 revenue was $6.64 billion, down 23% from Q3 and 20% from Q4 2021. CEO Sanjay Mehrotra said the market for computing hardware deteriorated significantly since the last earnings update three months ago, and what began to look like a mild sales downturn now looks a bit more vicious. Remember, Micron is a highly cyclical manufacturing business, and a pullback in customer demand normally occurs every couple of years or so.
Source Fool.com
