Micron Technology (NASDAQ:MU), the leading U.S. manufacturer of computer memory chips, is facing its steepest share decline in over four years after issuing a revenue forecast that fell significantly short of analyst expectations.
The company cited weak demand for smartphones and personal computers as the primary cause.
In a statement released Wednesday, Micron projected sales of approximately $7.9 billion for its fiscal second quarter, ending in February.
This figure is considerably lower than the average analyst estimate of $8.99 billion.
Projected profit also fell short, with a forecast of no more than $1.53 per share (excluding certain items), compared to the $1.92 projection.
While Micron reported strong orders for components used in artificial intelligence computing, the company is still grappling with decreased demand from phone and PC manufacturers, which represent the bulk of its chip volume.
Micron shares, which had seen a 22% increase year-to-date through Wednesday’s close, plummeted 15% in premarket trading before New York exchanges opened on Thursday.
If this decline persists, it will mark the company’s largest intraday drop since March 2020.