Micron: What To Expect From This Week’s Earnings

Summary:

  • Excessive capex spending in memory chips has led to inventory problems and a sharp downturn is expected.
  • The much-anticipated recovery in consumer PCs and smartphones will not happen until 2024 as demand is pushed out.
  • I expect Micron to report a decrease in NAND revenues of 47.2% YoY and DRAM.

Taiwan Micron Technology Company plant.

BING-JHEN HONG/iStock Editorial via Getty Images

There are two significant reasons for the downturn in the memory market – the capex/WFE overspend in 2020 and 2021, and the ensuing macroeconomic issues impacting consumer discretionary spending.

Currently, the smartphone market continues to


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