For 2023, Micron expects its year-on-year bit supply growth to be harmful to DRAM and in the single-digit percentage range for NAND versus Western Digital's prior forecast of low-to-mid 20% NAND bit supply growth.
As a result, Micron is reducing DRAM, and NAND wafer starts by approximately 20% versus the fiscal fourth quarter of 2022.
Micron will make these reductions across all technology nodes.
In addition, the firm is looking for additional capex cuts.
As such, Miller again lowered his FY23 forecast for Western Digital. Concerns over a weaker-than-expected recovery and its associated drain on Western Digital's cash position led to the re-rating.
Miller cut the FY23 forecast for Western Digital from non-GAAP earnings of $0.76 per diluted share on sales of $13.4 billion to non-GAAP earnings of $0.22 per diluted share on sales of $13.0 billion.
Last month, memory chip maker SK Hynix also offered a similar gloomy forecast for demand, citing deteriorating demand in the computer and corporate server markets.
Price Action: WDC shares traded lower by 0.33% at $36.30 on the last check Thursday.
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