The microchip maker has announced a notable decline in demand for semiconductors, and as a result has cut its revenue forecasts and also its capital investment. Its action, heavily punished this year, has a potential of 40% . | All about the Tressis Cartera Eco30 fund , advised by elEconomista .
Can Europe be autonomous? It depends for energy on Russia, Saudi Arabia, Iran or Algeria, and now more and more on the United States. It also needs Asian and North American suppliers of electronic components. “[Vladímir Putin] invaded [Ukraine] and left Europe in the hands of the US . A criminal invasion, yes, but also absolute stupidity, strengthening the power of the US,” said the linguist and philosopher Noam Chomsky a few days ago on Cadena be .
The words of the federalist Altiero Spinelli still resonate when he said, in 1947, that “if the Europeans cannot seize the opportunity [to create a union], the United States will be increasingly tempted to pass from the liberal alternative to that of imperialism “.
To the pressure from Washington is now added that of Beijing. “There is a real danger that Europeans will be caught in the middle of Sino-American competition ,” political scientist Jonathan Hackenbroich, linked to the European Council on Foreign Relations, wrote in 2020. “ European sovereignty must mean being able to decide for ourselves about our interests and negotiate effectively within an interdependent system through credible countermeasures against hostile threats and actions,” the expert said.
The European Union wants to increase the production of semiconductors in Europe and for it to account for 20% of the world share in 2030. In the remaining 80%, there are producers such as Micron Technology : the largest manufacturer of data storage memories in the US.
The tech company this week gave a weak forecast for the current quarter (the first of its 2023 fiscal year): $2 billion less in sales than analysts estimated; “renewing concerns that demand for personal computers and smartphones is falling,” reported Bloomberg .
Inflation and recession fears — plus a post-pandemic return to the office — have slowed device purchases, leaving memory buyers with unused stockpiles of chips . As part of its response to lower demand, Micron will cut capital spending by 30% in its fiscal year 2023, until inventories normalize. However, they expect conditions to improve from May.
After earning €9 billion in fiscal 2022, Micron’s net profit will fall 60% in fiscal 2023 to €3.6 billion. In terms of revenue, after the historical figure of 2022, a decrease of 20% is expected in 2023 to 25,300 million.
Micron stock, which receives a buy recommendation, has lost 45% since January and has a 40% upside potential , according to the market consensus collected by FactSet, with which it could reach 70 dollars in 12 months. Thus, the price/earnings ratio of the US company is 6 times in 2022 and 13 times in 2023.