Memory chipmaker Micron expects revenue drop, expects AI to boost sales in 2025

FILE PHOTO: A smartphone with a displayed Micron logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration

(Reuters) -Micron Technology Inc on Tuesday forecast third-quarter revenue would tumble nearly 60% from a year earlier but the steep drop was in line with Wall Street expectations and company executives painted a rosy outlook for 2025 with artificial intelligence boosting sales.

With a glut still nagging the chip industry, Micron expects the deepest revenue drop since 2001. Micron said it would keep investments at about $7 billion for fiscal year 2023, the lower end of a previously stated range. It will target a 15% headcount reduction this year, bigger than its previous 10% target.