Micron's Loss Forecast Widens, Shares Drop as Earnings Miss Expectations
Micron Technology has widened its first-quarter loss forecast, causing its shares to drop. However, the chipmaker remains optimistic as it plans to increase production of new product lines and aims to become a supplier to Nvidia. Micron's revenue forecast for the first quarter exceeded expectations, driven by demand for its memory chips in the artificial intelligence sector. The company is working with Nvidia to qualify its high-bandwidth memory chips for use in Nvidia's computing chips. Micron expects significant revenue from these chips next year and anticipates positive gross margins in the second half of fiscal 2024.