Tuesday, December 12, 2023

Micron has become a ‘victim’ of the trade war between the US and China

Micron fell in the stock market due to the decrease in its income due to the trade war between the US and China which caused the Asian country to ban its products.

The trade war between the US and China has affected many sectors, including chips. In fact, the measures imposed by Washington responded to Beijing by banning the import of Micron Technolog products. That resulted in a 40% decrease in revenue for the fiscal fourth quarter, according to Martin Baccardax of The Street.

Even the agreement announced by NVIDIA for artificial intelligence did not help to avoid the fall.

Micron said late Wednesday that its non-GAAP loss for the three months ended August, the group’s fiscal fourth quarter, was $1.07 per share, well within Wall Street forecasts. $ 1.18, but from earnings of $ 1.45 per share in the same period. last year.

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The group’s revenue, Micron said, fell 40% to more than $4 billion thanks in part to the impact of a “security review” by China’s Cyberspace Administration, implemented in retaliation for the Biden administration’s ban on exporting high-tech equipment and chips.

Looking ahead to the current quarter, Micron said it saw another GAAP loss of $1.14 per share, compared to Refinitiv’s forecast of a loss of 0.95 cents, on revenue of about $4.2 billion to $ 4.6 billion.

“The development of Micron’s deal with Nvidia, which will see “high-bandwidth memory,” or HBM, chips integrated with Nvidia’s AI computing chips, is likely to drive revenue growth through 2024.” , the company said.

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“We are very excited about our HBM product. It is an industry-leading product in terms of performance, power and capacity. And as we mentioned, this product is in the qualification stages with our customers here and we expect revenue to increase by early 2024,” CEO Sanjay Mehrotra told investors in a conference call on Wednesday night. “And yes, we’re on track to achieve significant revenue, $700 million in our fiscal ’24.”

“This is an exciting opportunity for the memory industry and Micron is well positioned to take advantage of the opportunities in generative AI that require the type of characteristics that our HBM3E memory brings to market,” added Mehrotra.

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Micron Technolog was trading higher on Thursday afternoon at $65.55. The 70 and 200 period moving averages surround the last candle, the RSI is below 38 points and the fast line (blue) of the MACD is above the zero level.

Medium-term support is at $60.50 and medium-term resistance at $72.33. Meanwhile, the Ei indicators are mixed.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com/
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