Micron Tech Shares Edge Up 6.1% on Executive Comments on Market Bottom

By Denny Jacob

Micron Technology Inc. shares edged up 6.1% to $62.87 on Wednesday after company executives suggested the market may be reaching a bottom.

The memory-chip maker on Tuesday reported second-quarter results showing a steep loss of $2.31 billion and revenue declining to $3.69 billion from $7.79 billion a year earlier.

The results were affected by its inventory levels, which it had writedowns of $1.43 billion in the quarter. The company also said its third-quarter guidance assumes a writedown of about $500 million tied to inventory produced in the quarter.

But investors may be buoyed by Chief Executive Sanjay Mehrotra's comments on its quarterly earnings call. The CEO said Micron thinks cloud revenue bottomed in the second quarter. Mr. Mehrotra also said the company believes data center revenue bottomed in the second quarter and that it expects to see revenue growth in the third quarter.

"We now believe that customer inventories have reduced in several end markets, and we see gradually improving supply/demand balance in the months ahead," Mr. Mehrotra said on the earnings call.

Micron's share price movement is seemingly lifting semiconductor giant Intel Corp.'s stock as well, raising it up 3.6% to $30.36.

Write to Denny Jacob at [e-mail]

(END) Dow Jones Newswires

March 29, 2023 11:45 ET (15:45 GMT)

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