Micron (NASDAQ:MU) is down in Friday afternoon’s trading, and it’s thanks to a research note from Argus Research that puts a rather unpleasant spotlight on the company. The Argus Research report, put together by analyst Jim Kelleher, had little good to say about Micron. Kelleher noted that the semiconductor market is poised for a greater downturn.
That’s largely thanks to a decline in smartphone interest and other consumer electronics. Worse, the generally reliable front of data centers isn’t likely to be helpful. The weakness in consumer tech is likely to spread to more corporate tech as well. The “unfavorable environment,” as Kelleher calls it, is “…likely to persist for multiple quarters.”
Micron isn’t taking this lying down. Days ago, the company announced significant cost-cutting measures, including layoffs of 10% of the company’s staff—around 4,800 people all told—and the suspension of 2023 bonuses. Indeed, some analysis suggests that the market has already priced in the recent declines in Micron products demand. Said analysis notes that memory sales aren’t really down all that much, even if gross margins are in decline.
Further, there’s good news from the analyst sector for Micron. Analyst consensus calls it a Moderate Buy. Plus, with an average price target of $62.90, it has 27.1% upside potential.
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