Micron Technology (MU) -) shares slumped lower Tuesday after the chipmaker updated its current quarter profit forecast ahead of an appearance by CEO Sanjay Mehrotra later today at a tech conference in Arizona.
Micron said it expects to post a non-GAAP loss for the three months ending in November, the group's fiscal first quarter, of around $1 per share, down from its prior forecast of $1.14 per share and the LSEG consensus estimate of 99 cents per share.
Group revenues, Micron, said, would likely approach $4.7 billion, a tally that is only modestly higher than the $4.2 billion to $4.6 billion forecast it issued in late September, thanks to what it called improved supply and demand balance and improved pricing."
Mehrotra will likely detail the new forecasts when he speaks at the UBS Global Technology Conference in Scottsdale later this morning.
Micron posted a loss of $1.07 per share for the three months ending in August, and forecast further near-term losses despite an expected boost from a supply deal with AI market leader Nvidia (NVDA) -).
Group revenues, Micron said, fell 40% to just over $4 billion thanks in part to the impact of its "security review" by China's Cyberspace Administration, put in place as retribution for the Biden administration's ban on the export of high-tech equipment and chips.
Micron's has said its developing deal with Nvidia, which would see its 'high bandwidth memory', or HBM, chips embedded in Nvidia's AI computing chips, is likely to drive revenue growth further into 2024.
Micron shares were marked 3.2% lower in early Tuesday trading to change hands at $75.05 each, a move that would trim the stock's six-month gain to around 4.7%.
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