Micron ticks up even as Cleveland Research highlights recent pricing weakness
vzphotos/iStock Editorial via Getty Images


Micron Technology (NASDAQ:MU) shares rose fractionally in early trading on Wednesday even as investment firm Cleveland Research highlighted recent pricing weakness for memory.
Analyst Chandler Converse who has a neutral rating Micron (MU), noted the average selling prices for both dynamic random access memory, or DRAM, and NAND look to be down between 15% and 20% (and in some cases as much as 25% or more), compared to a prior view of 10% to 15%.

"Limited clarity on timing of price stabilization, feedback suggests [third-quarter average selling prices] flat/down with potential for increases in [the fourth-quarter]," Converse wrote.
The analyst added that memory inventory is "elevated" across customers, but vendor inventory is seen peaking in the second-quarter, though there could be bit supply forecast cuts yet again.
Last week, Wells Fargo spotlighted recent comments by Micron (MU), which said inventory write downs would likely occur when it reports fiscal second-quarter results, potentially impacting its book value.