Micron’s Troubles

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Micron Technology’s Troubles: It’s The company, Not The Economy

Micron Technology’s stock has dropped 14% since the start of August 2020.

It overestimated server NAND demand in mid-2018 and mid-2019 and DRAM demand in mid 2019. Its overshot production of NAND and DRAM, which resulted in inventory overhang and a drop in ASPs during this period that continues to this day.

Since 3CYQ18, firm’s DRAM bit shipments have increased 32%, NAND bit shipments increased 86%, DRAM ASPs decreased 55%, and NAND ASPs decreased 44%.

The company is poor at recognizing and reacting to supply/demand dynamics and needs to drastically make sever cuts in Capex spend.