Micron stock trends higher following earnings miss signaling an optimistic Q3
The Yahoo Finance Live team discusses Micron's recent earnings report and its outlook for the year.
SEANA SMITH: All right, let's also take a look at Micron-- IT posted its biggest quarterly loss on record as a weak market for PCs and smartphones weigh on the company's financials. But Wall Street was actually optimistic on this print and here's why. They thought that these most recent results and their outlook here signaling that a turnaround is ahead, and maybe the worst is behind us here for the chip industry.
We know that Micron announced that they were going to be cutting jobs and initially planned a cut of about 10% of reduction here for their workforce. That's now going to be a 15% reduction in their workforce. So a number of analysts, though, despite the fact that we saw a lot of optimism on the Street, at least today, a number of analysts still cautious just in terms of the tough environment that remains here for a number of the chip makers.
DAVE BRIGGS: Again, a remarkable look from analysts there-- 28 buys, nine holds, two sells. What you hear really a consensus is this is not a right now story. This is a long-- this could be potentially a long wait. For example, BOA just says well positioned, but no quick fix.
And JP Morgan says there is potentially a light at the end of the tunnel. So this is probably not next month, next two months, next quarter story, but probably the next fiscal year, at some point, that turnaround. And in part, look, you measure it by the leader in the space, which is Nvidia, up 87% year to date.
So it pales by comparison. But certainly some upside if you're willing to wait, if you're willing to be patient, at least according to the analysts. And eventually, we've talked about the CHIPS Act for quite some time, but the money has not begun to actually flow. We talked about it many months ago. They have not delivered the cash yet and they do stand to be a big beneficiary from the CHIPS Act eventually.
SEANA SMITH: Certainly. All right, a good stock to keep in mind.