Micron stock rises as CEO calls bottom in memory-chip market

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Micron shares rose in the extended session Wednesday after $MU's chief executive called the bottom on the sector, and revenue came in slightly higher than expected. The company reported a third-quarter loss of $1.9 billion.

Micron Technology Inc. MU, +0.42% shares rose in the extended session Wednesday after the memory-chip maker’s chief executive called the bottom on the sector, and revenue came in slightly higher than expected. Micron shares rose 4% after hours, following a 0.4% gain in the regular session to close at $67.07, while the S&P 500 index SPX, -0.04% declined less than 0.1%. The Boise, Idaho-based company reported a third-quarter loss of $1.9 billion, or $1.73 a share, versus net income of $2.

“We believe that the memory industry has passed its trough in revenue, and we expect margins to improve as industry supply-demand balance is gradually restored,” said Sanjay Mehrotra, Micron chief executive, in a statement. “The recent Cyberspace Administration of China decision is a significant headwind that is impacting our outlook and slowing our recovery.” Micron forecast an adjusted loss of $1.26 to $1.12 a share on revenue of $3.7 billion to $4.1 billion for the fourth quarter.

 

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