Micron Technology Cont'd To Fall Today?
It came as a “surprise” that China has decided to ban $Micron Technology(MU)$ chips from being imported into China, citing the “US often used alibi” of “national security” as the reason.
This came about after a security review conducted by the Cyberspace Administration of China.
The ban is on operators of “critical information infrastructure” in China from buying products from the US chip giant.
China’s Top Semiconductor Chip Supplier:
Samsung
SK Hynix
Micron Technology - it is the 4th largest supplier of chips to the Chinese market.
What Is Unknown?
With the announcement coming out of the blue, there are still many unknows:
Duration of ban?
Availability of alternative supplier/s.
Response from US government. Doubtful response will be forthcoming as the Biden admin will be too “busy” negotiating US Debt Limit crisis. LOL!
Financial / Earnings Impact On Micron Technology:
It is without a doubt that Micron Technology is the scapegoat caught in the line of fire. However the same could be said about US massive ban on technology firm Huawei as well rght!
With the ban enforced, its impact on this chip maker’s earnings will definitely be impacted.
Q2 2023 quarterly earnings reported in Mar 2023
Looking at Micron Technology’s Q2 2023 - Top line & Bottom line.
Both top line and bottom line are in the “red”.
Doesn’t require much imagination on how going forward, Micron’s earnings will be further impacted.
In its quarterly earnings report, there is no breakdown of business by countries or regions. Hence I will not be able to accurately forecast the exact financial impact.
As it is the Top 4th supplier of chips to China, it is not unreasonable to estimate a -12% to -18% financial impact to Micron’s future earnings.
In conclusion, I think Micron Technology’s stock price will continue to slide in the foreseeable future.
Stock Price Will Stop Falling When:
China lifts the ban on sale of Micron chips to the mainland.
Micron is able to find a new customer whose order-volume could cover or eclipse China’s order-volume.
Do you think Micron Technology stock price will continue to fall?
Do you think Micron Technology will be able to find a new customer to cover the sales void left by China?
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The one underappreciated bright spot in Intel's portfolio is sapphire rapids (and even more so, it's successor chips to come); Intel made significant architectural updates to sapphire rapids (in fact this was one of the reasons given for the multiple delays)
Intel is only rising in sympathy with tech in general. AMD up another 1.7% today. AMD is almost valued 50% higher than Intel market cap.
这将是中国政府对任何充满敌意的反对者所能提供的“最好的回报”。甚至不要试图欺负中国，他们的报复迟早会到来。
The rating is very important to me. Tks!
Hope u consider "Follow me" so that you get first hand read of my Daily new posts. Tks!
Apple announces multi year chip agreement with Broadcom, stock up $20 or 3%. Now that’s a real partner as QualCunt is shown the door on its modems. While Broadcom doesn’t make modems, it shows their diversification otherwise.
MU在中國的直接+間接銷售總額爲25%-30%。MU的市場份額也一直被韓國搶走。
Nobody wants to own INTC. AMD going to exceed its normal volume today. INTC wont even be half its normal volume. Nothing will get INTC going. Needs a shot of roids.
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