Micron sees FY23 industry bit demand growth reduced in DRAM, NAND

Expectations for calendar 2023 industry bit demand growth have reduced to low-to-mid single digits in DRAM and to high-single digits in NAND, which are well below the expected long-term CAGR of mid-teens percentage range in DRAM and low 20s percentage range in NAND. The company continues to expect stronger industry bit shipments for DRAM and NAND in the second half of the calendar year, driven by secular content growth and continued improvement in customer inventory. The company sees DRAM and NAND supply growth in calendar 2023 to be negative for the industry as utilization and capex cuts are impacting supply growth. While supply demand balance is improving, due to the excess inventory, profitability and cash flow Micron will remain extremely challenged for some time. The company expects year-on-year bit supply growth to be meaningfully negative for DRAM, and to produce fewer NAND bits in calendar 2023 than in calendar 2022.