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yk__
I understood that however though the MLC strategy is a good strategy over TLC ...
Warren
Maybe it's here but I can't see *how much* the forecast was lowered. This would ...
Analyst cuts forecast for Micron
Mark LaPedus
9/1/2010 2:28 PM EDT
SAN JOSE, Calif. - The PC-based chip market is taking a hit amid a slowdown.
First, Nvidia Corp. recently issued a warning. Then, last week, Intel Corp. lowered its sales target for the third quarter. Earlier this week, an investment banking firm has lowered its estimates for Advanced Micro Devices Inc. (AMD).
Now, an investment banking firm has lowered its estimates for Micron Technology Inc. ''In summary, we are trimming our August estimates (for Micron) to reflect more muted end demand for DRAM/NAND,'' said Dunham Winoto, an analyst with Avian Securities LLC. The analyst cut his forecast for Micron for sales of $2.68 billion and EPS of $0.40.
''The weakness on DRAM consumption from muted PCs is well-known. On the supply side, we expect more industry bits for the rest of 2H and into 2011. That said, despite the increase in capex, when compared to the past it does not appear too excessive as most DRAM companies are still limited by their balance sheets and financing remains difficult,'' Winoto said.
''On NAND, Micron is a bit behind in TLC (three-bit-per-cell) and leader SanDisk, as they have instead focused on producing the smallest geometry MLC (multi-level-cell). However, from a cost basis, we believe that an MLC process shrink is slightly more cost efficient than TLC on an older process node,'' Winoto said. ''Though perhaps coincidental, we prefer Micron's strategy of focusing on MLC rather than TLC considering the latest pricing dynamics. Nevertheless, we continue to see too much inventory of TLC and expect ASP pressure there to continue in the next few months.''
First, Nvidia Corp. recently issued a warning. Then, last week, Intel Corp. lowered its sales target for the third quarter. Earlier this week, an investment banking firm has lowered its estimates for Advanced Micro Devices Inc. (AMD).
Now, an investment banking firm has lowered its estimates for Micron Technology Inc. ''In summary, we are trimming our August estimates (for Micron) to reflect more muted end demand for DRAM/NAND,'' said Dunham Winoto, an analyst with Avian Securities LLC. The analyst cut his forecast for Micron for sales of $2.68 billion and EPS of $0.40.
''The weakness on DRAM consumption from muted PCs is well-known. On the supply side, we expect more industry bits for the rest of 2H and into 2011. That said, despite the increase in capex, when compared to the past it does not appear too excessive as most DRAM companies are still limited by their balance sheets and financing remains difficult,'' Winoto said.
''On NAND, Micron is a bit behind in TLC (three-bit-per-cell) and leader SanDisk, as they have instead focused on producing the smallest geometry MLC (multi-level-cell). However, from a cost basis, we believe that an MLC process shrink is slightly more cost efficient than TLC on an older process node,'' Winoto said. ''Though perhaps coincidental, we prefer Micron's strategy of focusing on MLC rather than TLC considering the latest pricing dynamics. Nevertheless, we continue to see too much inventory of TLC and expect ASP pressure there to continue in the next few months.''
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Warren
9/1/2010 5:09 PM EDT
Maybe it's here but I can't see *how much* the forecast was lowered. This would seem like a useful bit of info. Especially in light of the "but then again" quotes provided in the article.
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yk__
9/23/2010 12:22 AM EDT
I understood that however though the MLC strategy is a good strategy over TLC and therefore however we are reducing Micron's target.
Please let me know if I am right.
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