Memory Pricing Momentum Cools Ahead of Micron Earnings, Raising Margin Concerns
MU has more than doubled off its 52-week low of $159.971.
Summary
Memory pricing momentum is showing signs of cooling ahead of Micron's earnings, with non-HBM players like Nanya and Macronix reporting slowing monthly sales growth. DRAM ASP growth is expected to decelerate to 13-18% in Q3 from 50-60% in Q2, while additional Chinese supply from CXMT adds pressure. Micron's gross margin guidance will be a key focus, as the market may react negatively if the company fails to guide for another increase from the current 86% level.
At the time of this announcement, MU was trading at $1,069.38 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.2T. The 52-week trading range was $159.97 to $1,255.00. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.