Micron shares fell more than 7% on Wednesday, continuing a pattern of weakness on Tuesday following its earnings report.
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(Caixin) - Micron Technology Inc shares fell after the largest U.S. chipmaker said it recently stopped supplying China's Huawei Technologies Co.
Micron also cut its capital spending plans, citing weak demand from some companies and forecasting a likely supply glut next year.
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The company's shares fell more than 7% on Wednesday, continuing a pattern el salvador telegram number database of weakness after Tuesday's earnings report. The stock is down nearly 6% for the year, while the benchmark Philadelphia Semiconductor index has risen more than 20%.
In its presentation, Micron said it stopped supplying Huawei on Sept. 14. The Chinese tech giant has recently been hit by U.S. government moves to cut it off from suppliers.
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Chief Executive Sanjay Mehrotra said Huawei is Micron’s biggest customer and it will take time to make up for lost orders. The company’s existing license was replaced by new restrictions from the U.S. government that prevented it from supplying Huawei with chips from foreign factories. “Micron has applied for new permits, but there is no guarantee when or if they will materialize,” Mehrotra said.