Micron cuts revenue forecast amid PC component shortage

PC manufacturers in the consumer market are facing a shortage of components, and the impact may spill over into the memory market. Micron Technology Inc. said recently that its memory revenue this quarter is likely to fall short of analysts' expectations.

Micron's third quarter revenue may be lower than expected due to PC material shortage

Micron produces NAND memory chips for data storage and DRAM memory chips widely used in data centers, PCs and other devices. Sales of both chips are likely to decline in the third quarter of this year. Micron CEO Sanjay Mehrotra said that some PC customers have adjusted the amount of memory they originally planned to purchase due to shortages of PC components other than memory. However, it is expected that PC customers will be able to resolve the current challenges within a few months.

On the other hand, analysts believe that the reduction in memory purchases by PC manufacturers may be the beginning of weak memory sales during this period. Wedbush analyst Matthew Bryson pointed out that the challenge faced by Micron is that the memory industry may soon face a long-term decline in sales, or a more moderate demand downgrade. According to IBES analyzed by Refinitiv, Micron's revenue for this quarter is estimated to be US$7.65 billion, plus or minus US$200 million, lower than the average analyst expectation of US$8.57 billion.