shares fell Tuesday after the chip company said it was reducing its guidance for fourth-quarter revenue.
Micron said in a filing that it expects revenue in the period “may come in at or below the low end of the revenue guidance range” the company provided during its earnings call in late June. At the time, Micron said it expects revenue of $6.8 billion to $7.6 billion.
The company also said that in the first quarter bit shipments are now expected to decline sequentially, and “we expect significant sequential declines in revenue and margins.”
Micron also said it expects free cash flow to be negative in the first quarter.
“We expect a challenging market environment in FQ4 22 and FQ1 23,” Micron said in the filing that was made ahead of the KeyBanc Technology Leadership Forum, which is taking place Tuesday.
“To address the near-term environment … we are announcing new FY23 wafer fab equipment capex reductions adding to the WFE capex reductions discussed in our June 30 earnings call,” Micron said, adding it expects fiscal 2023 capital expenditures “to be down meaningfully” from fiscal 2022.
The stock was down 2% to $60.22 on Tuesday.
Micron’s warning follows one from fellow chip maker
(NVDA) on Monday.
Earlier Tuesday, Micron announced it plans to invest $40 billion in the U.S. through the end of the decade, and create 40,000 new U.S. jobs.
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