Micron Technology Inc.’s stock fell 3% before opening bell Wednesday after the chip maker cut its 2023 supply forecast, citing market conditions. The company announced that it is reducing DRAM and NAND wafer starts by approximately 20% compared with the fiscal fourth quarter of 2022. In a statement, the company said the reductions will be made across all technology nodes where Micron has meaningful output. Micron is also working toward additional cuts in its capital expenditure, it said, and now expects calendar 2023 year-on-year bit supply growth to be negative for DRAM, and in the single-digit percentage range for NAND. “Micron is taking bold and aggressive steps to reduce bit supply growth to limit the size of our inventory,” said Chief Executive Sanjay Mehrotra, in the statement. “We will continue to monitor industry conditions and make further adjustments as needed.” Micron’s stock has fallen 32.3% in 2022, compared with the S&P 500 Index’s decline of 16.3% and the PHLX Semiconductor Index’s 28.8% decline.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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