CLSA Sees Micron Technology (MU) Reducing Output

Analyst Sanjeev Rana comments that Micron Technology (NASDAQ: MU) us seeing evidence of declining inventory at customers including hyper-scalers and is expecting H2 2019 is experience a strong demand recovery.

• Sees NT demand visibility as low but is optimistic about a recovery in H2 2019
• "Inventory draw-downs by hyper-scale customers affected demand but it expects growth to resume in 2H19 as it is seeing improvement in customer inventory situation. Graphics inventory adjustments are also expected to be completed by 1H19. According to the company some customers that had gone silent the past few months due to high inventory are starting to place orders."
• Says company will idle 5% of DRAM and NAND wafer capacity to address inventory and oversupply.

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