Micron Technology(US:MU) Xin Lang Cai Jing·2025-08-20 23:13Core Viewpoint - Micron Technology's stock has experienced a decline of 5.13% over the past two days, raising concerns among investors about the company's future development [1][2] Group 1: Market Environment - The U.S. Department of Commerce is considering converting subsidies from the CHIPS Act into equity, which could make the government a significant shareholder in companies like Micron, leading to governance structure uncertainties [1] - The overall decline of the Philadelphia Semiconductor Index has also impacted Micron's stock performance [1] Group 2: Company Adjustments - Micron is undergoing significant business adjustments, including a large-scale layoff in its China operations, primarily affecting embedded R&D and testing departments, with over 300 employees expected to be laid off [1] - The company has decided to stop future development of mobile NAND products due to intense competition and declining profit margins in the mobile NAND market [2] Group 3: Future Outlook - Despite recent market challenges, Micron remains optimistic about its future profitability, raising its revenue guidance for Q4 FY2025 to $11.2 billion and projecting a gross margin increase to 44.5%, driven by growing demand for high-bandwidth memory products due to AI applications [2] - The strategic adjustments being made by Micron are aimed at optimizing resource allocation and enhancing profitability in response to changing market demands [2]