NVIDIA Corp (NASDAQ:NVDA) shares are trading lower in sympathy with Micron Technology Inc (NASDAQ:MU), which fell after the company reported fiscal first-quarter financial results that came in below analyst estimates.
- MU Q1 Revenue: $4.08 billion missed estimates of $4.12 billion
- MU Q1 EPS: $(0.04) missed estimates of $(0.01)
According to a regulatory filing, Micron entered into a restructuring plan in which it expects to reduce headcount by approximately 10%. In connection with the plan, the company expects to incur charges of at least $30 million in the second quarter of fiscal 2023.
“Micron’s strong technology, manufacturing and financial position put us on solid footing to navigate the near-term environment, and we are taking decisive actions to cut our supply and expenses. We expect improving customer inventories to enable higher revenue in the fiscal second half, and to deliver strong profitability once we get past this downturn,” said Sanjay Mehrotra, president and CEO of Micron.
Multiple analysts also lowered price targets on Micron shares following the company’s quarterly results.
Both Micron and Nvidia operate in the semiconductor space.
See Also: Looking At NVIDIA’s Recent Unusual Options Activity
What Else: Several stocks are trading lower amid overall market weakness following better-than-expected U.S. GDP and jobless claims data, which have added to concerns of an overheating economy and tight labor market.
Last week, the Federal Reserve raised its target fed funds rate by 0.5% following four consecutive 0.75% rate hikes as the Fed continues to battle high inflation.
Fed Chair Jerome Powell acknowledged that recent data was encouraging in a press conference following the decision on rates, but he indicated that it wasn’t enough.
“It will take substantially more evidence to get confidence that inflation is on a sustained downward path,” Powell said.
NVDA Price Action: Nvidia has a 52-week high of $313.30 and a 52-week low of $108.13.
Nvidia shares are down 9.52% at $149.31 at time of publication, according to Benzinga Pro.
