Micron Technology Inc (NASDAQ:MU) projects the recent China ban on memory chip sales to curb revenues.
- At a conference on Monday, Micron’s CFO Mark Murphy stated, “We are currently estimating a range of impact in the low single-digit percentage of our company’s total revenue at the low end, and high single-digit percentage of total company revenue at the high end,” reported Reuters.
- He further stated that the direct and indirect sales to China-headquartered companies comprised around a quarter of its revenue and cited the lack of clarity on Beijing’s concerns.
- Late Sunday, the Cyberspace Administration of China flagged serious cybersecurity issues posed by Micron products and potential risks to the country’s key information supply chains.
- The regulator urged domestic firms that provide “key information infrastructure” to stop buying from Micron.
- Analysts warned against a domino effect from Chinese companies that did not provide “critical information infrastructure” to seek to eliminate Micron from their supply chains.
Price Action: MU shares are trading lower by 0.79% at $66.71 premarket on the last check Tuesday.
Now Read: US Stocks Settle Mixed Amid Debt Ceiling Talks; Market Volatility Increases
