Micron stock declines after company says half of China revenue could be at risk due to ban on sales

Micron Technology Inc.
MU,
-1.51%
now expects that half of China-headquartered customer revenue is at risk of being impacted due to a previously disclosed review of the company’s business by Chinese authorities that prompted them to ban critical information infrastructure operators in the country from using Micron’s products. The new estimate equates to a low double-digit percentage of Micron’s worldwide revenue, the company said Friday in a filing with the Securities and Exchange Commission. Micron back in May had estimated a low-single-digit to high-single-digit percentage impact, before updating that estimate later that month to express expectations that the negative impact could fall at the high end of that range. Shares of Micron were down more than 2% Friday after the latest update. “Micron is working to mitigate this impact over time and expects increased quarter-to-quarter revenue variability,” the company said in Friday’s filing. “Micron’s long-term goal is to retain its worldwide DRAM and NAND share.”