received a rare "underweight" rating from a brokerage due to the memory-chip maker's heavy exposure to mobiles and PCs at a time when rising inflation forces consumers to rein in spending."With the global economy expected to face headwinds, we are concerned about Micron's more than 50% exposure to consumer-like markets such as PCs, mobile, and other," Piper Sandler wrote in a note to clients.
Piper Sandler added that the Dynamic Random Access Memory market, which represents over 70% of the company's total revenue, had already started to see price declines for most configurations.Market research firm Counterpoint reported in April that global PC shipments were down 4.3% in the first quarter of 2022, as the war in Ukraine and China's lockdowns pressured already fragile supply chains and added to shortages of components.
The brokerage, however, expressed confidence in the company's data centre business, which represents less than 30% of revenue.RegisterSign up to our investor newsletter to get the latest news and trends in global financial markets.