The rally in semiconductor stocks this year helped shares of Micron Technology (NASDAQ: MU) rise impressively in the first half of 2023 despite the memory market's downturn, but the stock has been pulling back despite reporting better-than-expected results at the end of June.

Micron released its fiscal 2023 third-quarter results (for the three months ended June 1) on June 28. The company delivered $3.75 billion in revenue, which exceeded consensus estimates of $3.65 billion. It also reported a smaller-than-expected loss of $1.43 per share, as compared to analysts' expectations of a loss of $1.61 per share.

The company's revenue guidance of $3.9 billion for the current quarter was also slightly ahead of the $3.88 billion consensus estimate. But Micron's quarterly results didn't receive a positive response from the market, as the stock has lost nearly 5% since June 28. Nevertheless, the stock posted impressive gains of 28% so far this year. However, a closer look at Micron's earnings report reveals significant challenges facing the company.

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Source Fool.com