Street revenue estimates need to come down for Micron, says Credit Suisse

Credit Suisse notes that Micron (MU) management made some cautious comments at a competitor conference this morning, indicating that Q3 revenue could be flat to down quarter-over-quarter, which compares to consensus estimates of 5% sequential growth and management’s prior comments that they expected revenue to start to recover in the second half after a weak first half. The firm believes the softness is likely tied to ongoing weakness in the datacenter end market as it points out that based on commentary from others in the datacenter supply chain, such as Intel (INTC), Nvidia (NVDA) and AMD (AMD), cloud demand has slowed over the past several months. The firm thinks management’s comments mean that Street revenue estimates need to come down for the May quarter and for calendar 2023 and it also believes investors should expect a write down for the fiscal third quarter. Credit Suisse has an Outperform rating and $66 price target on Micron shares.