StockBeat: Micron's Wings Clipped as UBS Downgrades Outlook

Investing.com – Micron (NASDAQ:) is up about 50% for the year, but UBS cut its outlook on the chipmaker Friday amid worries that falling memory prices are likely to keep a lid on growth.

UBS said it was taking “a more cautious view on NAND pricing” through next year and cut its earnings and revenue estimates on the company for 2020 and 2021. Micron fell 1.5%.

Micron has forecast adjusted earnings in the range of 39 cents to 53 cents a share on revenue of $4.8 billion to $5.2 billion for the first quarter of its new fiscal year, the holiday quarter.

That was below estimates from Wall Street for earnings of 53 cents a share on revenue of $4.8 billion on average, according to FactSet.

Others seem to agree. Nomura said memory prices are continuing to slide and warned that “the December-quarter outlooks of many of the broader-based chip companies suggest ongoing softness.”

But it’s not just Micron reeling under the pressure of falling memory prices.

Samsung (KS:) recently reported that semiconductor revenues declined 29% year over year to about $15 billion in the third quarter of the year, as margins were hurt by a sharp decline in both NAND and DRAM prices.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.