MU stock was trading at $51.27 as of 12:41 PM EDT.
Semiconductor stocks were neutral on Friday as investors considered the effects of Micron Technology’s (NASDAQ:MU) spending cut and what it would mean for rival companies in the industry.
Micron (NASDAQ:MU) 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%.
Micron Stock Rises Despite A Disappointing Q1 Projection; Japan To Provide Up To $320M For Plant
The Boise, Idaho-based Micron (NASDAQ:MU) 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%.
MU stock outlook
Analysts anticipated that Micron (NASDAQ:MU) 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 (NASDAQ:MU) increased by 2%; however, they were off their session highs.
Small losses were reported by chip vendors like Lam Research (NASDAQ:LRCX), Applied Materials (AMAT), KLA Corp. (NASDAQ:KLAC), 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 (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), and Broadcom (NASDAQ:AVGO) and slight losses by Intel (NASDAQ:INTC), Texas Instruments (NASDAQ:TXN), and Analog Devices (NASDAQ:ADI).
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.
Featured Image – Unsplash © Christian Wiediger
Author Jowi Kwasu 
