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Memory-chip maker Micron Technology Inc (NASDAQ: MU) on Tuesday cut its current-quarter revenue forecast while warning of a negative free cash flow in the upcoming quarter as demand for semiconductors used in personal computers and smartphones continues to drop.
In a regulatory filing, the company said its fiscal fourth-quarter revenue may come at or below the low end of its prior forecast of $7.2 billion, plus or minus $400 million.
The warning sent the shares of Micron down almost 6%.
Micron, which last reported negative free cash flow in 2020, warned it could see significant sequential declines in revenue and margins in its first quarter due to a fall in shipments.
Rising inflation, the Russia-Ukraine war, and renewed COVID-19 lockdowns in key PC market China have hurt demand and worsened supply snags pressuring the sector
Other semiconductor giants, including Intel Corp (NASDAQ: INTC), Advanced Micro Devices (NASDAQ: AMD) and Nvidia Corp (NASDAQ: NVDA), have also flagged the rise in customer inventories.
Micron's forecast cut comes after it announced a $40 billion investment in memory chip manufacturing, which would boost its US market share from 2% to 10%.
Picture Credit: Micron
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