Chipmaker Micron tempers forecast as demand weakness deepens

Memory chipmaker Micron Technology cut its current quarter revenue forecast on Tuesday and warned of a negative free cash flow in the following quarter as demand for chips used in personal computers and smartphones continues to drop.

Revenue for the fourth quarter may come in at or below the low end of its prior forecast, the company said, sending its shares down about 5% in premarket trading. Its earlier estimate of $7.2 billion, plus or minus $400 million, had missed Wall Street targets in June.

Micron, which last reported negative free cash flow in 2020 during the early days of the pandemic, warned it could see significant sequential declines in revenue and margins in its first quarter due to a fall in shipments.