Micron Technology Inc. shares were falling more than 5% in morning trading Tuesday. The memory-chip producer said that it expects to be impacted by "challenging" market conditions. The company had called for $6.8 billion to $7.6 billion in revenue in its June earnings report.

Micron says it expects to be negative free cash flow in the first quarter. The free-cash disclosure was the “biggest stick in the eye’ from Micron’s announcement, an analyst says. “Many have highlighted that as bad as conditions in memory might get, MU would remain cash-flow positive through the ultimate downturn,” he writes.

Micron announced Tuesday that it would institute capital-expenditure reductions for wafer-fab equipment. Executives “now expect FY23 total capex to be down meaningfully versus FY22,” per the filing. The announcement is weighing on shares of semiconductor-equipment companies Lam Research and Nvidia.
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