Shares of Micron Technology (NASDAQ: MU) sank 4% after the company released fiscal 2023 fourth-quarter results (for the three months ended Aug. 31) on Sept. 27, but a closer look at the chipmaker's results suggests that its latest drop is a buying opportunity. Micron struggled on account of weak memory demand in recent quarters, which has led to a sharp decline in memory prices and sent the company's top and bottom lines plunging. Let's look at the reasons why buying Micron stock right now is a no-brainer.
Micron (MU) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
The tide is finally starting to turn in the memory chip markets. Production cuts across major suppliers of DRAM and NAND chips have helped whittle away the excess inventories held by customers. Micron (NASDAQ: MU) has been aggressive in reducing output, and it expects its wafer starts for both DRAM and NAND to be "significantly below" 2022 levels for the foreseeable future.