Shares of Micron Technology, the largest American maker of RAM and flash memory chips, fell sharply in preliminary trading today even as the manufacturer raised its quarterly sales forecast, Bloomberg reports.
Although Micron raised its first-quarter adjusted sales forecast to $4.7 billion from $4.6 billion, the company’s shares fell 4% as of 9:11 a.m. in New York. Micron also said it expects adjusted operating costs of $990 million, well above analysts’ expectations.
Many in the industry had expected Micron to see a larger increase in sales forecasts amid recovering demand for memory chips, both NAND and DRAM. Investors were anticipating a turning point that would end a difficult year for the computer memory market.
According to Bloomberg, Micron shares have risen 55% this year on expectations of an end to historic declines in the production of RAM and flash memory chips.