The memory giant raised guidance in March but the news failed to attract fresh buying interest.
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Micron Technology Inc. (MU) reports Q2 2021 earnings after Wednesday’s U.S. opening bell, with analysts looking for a profit of $0.96 per-share on $5.6 billion in revenue. If met, earnings-per-share (EPS) will mark a 113% profit increase compared to the same quarter last year. The stock closed lower in January despite beating Q1 2021 top and bottom line estimates and raising Q2 guidance, but recovered quickly and continued the uptrend into early March.
Micron Ceases 3D XPoint Development
The memory giant raised Q2 profit and revenue guidance again on Mar. 3 but the news failed to attract fresh buying interest, yielding a trading range that violated the 50-day moving average for the first time since October 2020 last week. Semiconductor sentiment has deteriorated since news of a worldwide shortage hit the headlines, contributing to massively overbought technical readings generated by 2020’s outsized 52% return.
Micron shifted technical focus last week, adjusting its portfolio strategy to focus on Compute Express Link (CXL), the recently introduced standard for communication between computation, memory, and storage. The company is also ceasing the development of 3D XPoint, a non-volatile memory technology developed jointly with Intel Corp. (INTC) for use in solid state drives (SSDs). The technology has received a lukewarm reception despite high marks by reviewers.