The market’s hope, or bullish perspective, is that fundamentals at the most commodity oriented chip company in the semiconductor industry have bottomed, namely bc MU stated that their days of inventory peaked in the quarter.  Generally speaking, customers over order chips during the good times, because the chip industry is operating at peak capacity, and the customers want to make sure to have enough chips to make their products. Once the downturn begins, they realize they’re sitting on too much chip inventory and slow, or stop, their chip purchases.  DRAM and NAND are the most commodity oriented chips in the industry, so they have the biggest order swing factor.  Generally speaking, Micron‘s sales will fluctuate much more over the course of a cycle, than Intel, for instance, and the more specialized chip makers, such as Texas Instruments, or NVDA, which should see their sales fluctuate much less. Many market participants look to chipmakers as a leading indicator of the market, or at least the tech sector, (similar to looking at transports as a leading indicator of the SPX) and hence the economy, which is why the chip industry started its downturn, and likely bottomed, ahead of the rest of the market. Hope that answers your question, Lewis.

Yes, I know what you mean. The two comments were not really in agreement. te22 was saying that Micron is seeing that the worst is behind, while Matt is saying that there is more trouble ahead. We shall see.