Sep 30, 2022 (PressReach.com via COMTEX) -- Semiconductor stocks were neutral on Friday as investors considered the effects of Micron Technology’s /zigman2/quotes/205710729/composite MU -0.88% spending cut and what it would mean for rival companies in the industry.
Micron /zigman2/quotes/205710729/composite MU -0.88% said in 2023 that it would reduce wafer fab equipment spending by as much as 50% the following year and total capital expenditures by 30% year over year. As a rival to Micron (MU) in the production of memory chips, Kioxia announced on Friday that, beginning in October, it would reduce wafer input volume at its Yokkaichi and Kitakami flash memory plants, which are run in conjunction with Western Digital (WDC), by about 30%.
The Boise, Idaho-based Micron /zigman2/quotes/205710729/composite MU -0.88% said it anticipates revenue in the range of $4 billion and $4.5 billion for the upcoming quarter, with profits per share varying between a loss of 6 cents and a gain of 14 cents. Gross margins should range from 24% to 28%.
Analysts anticipated that Micron /zigman2/quotes/205710729/composite MU -0.88% would have sales of $6.02B and earnings per share of 87c. Additionally, the commerce minister of Japan said that Micron (MU) would get up to $322M from Japan to manufacture advanced memory chips at a Hiroshima factory. Micron stock /zigman2/quotes/205710729/composite MU -0.88% increased by 2%; however, they were off their session highs.
Small losses were reported by chip vendors like Lam Research /zigman2/quotes/208077897/composite LRCX -1.77% , Applied Materials (AMAT), KLA Corp. /zigman2/quotes/209248041/composite KLAC -1.45% , and ASML Holding (ASML). Separately, Citi Investment added KLA Corp. (KLAC) to its list of companies with the greatest conviction rates on Friday while simultaneously deleting Lam Research (LRCX).
Other semiconductor stocks were mixed, with increases of around 1% or more seen by Nvidia /zigman2/quotes/200467500/composite NVDA -1.51% , Advanced Micro Devices /zigman2/quotes/208144392/composite AMD -1.65% , and Broadcom /zigman2/quotes/200646538/composite AVGO -0.70% and slight losses by Intel /zigman2/quotes/203649727/composite INTC -1.11% , Texas Instruments /zigman2/quotes/202237907/composite TXN -1.07% , and Analog Devices /zigman2/quotes/201631938/composite ADI -1.25% .
Both Micron Technology (MU) and Western Digital (WDC) were recently downgraded by Mizuho, which cited recent inspections that revealed “steepening pricing decreases” going into the upcoming quarter and the first half of next year.
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Author: Jowi Kwasu
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