:Micron Technology Inc projected fourth-quarter revenue and profit below market estimates on Thursday, a sign that geopolitical turmoil and weakness in consumer spending would weigh on demand for its memory chips.
Micron forecast adjusted revenue for the current quarter at $7.2 billion, plus or minus $400 million. Analysts on average expected a figure of $9.05 billion, according to Refinitiv IBES data. The outlook for memory chip makers has worsened in recent months as surging inflation, China's cooling economy and the Russia-Ukraine war hit consumer spending on smartphones and personal computers, a crucial market for the industry.
“Recently, the industry demand environment has weakened, and we are taking action to moderate our supply growth in fiscal 2023," said Micron Chief Executive Sanjay Mehrotra in the earnings release."We are confident about the long-term secular demand for memory and storage and are well positioned to deliver strong cross-cycle financial performance.”