Micron projected its revenue for the current quarter to be $7.45 billion to $7.85 billion, almost a billion-dollar lower than the consensus estimates. The supply chain constraint is again the main reason for the underwhelming outlook. 

On the conference call, management suggested that some of its PC customers cannot fulfill all the end demands due to a supply shortage of non-memory components. Those customers, in turn, are adjusting memory and storage purchases. The issue is limiting Micron's shipment in the near term but is expected to be resolved in a few months. 

• "Some PC customers are adjusting their memory and storage purchases due to shortages of non-memory components that are needed to complete PC builds. We expect this adjustment at our PC customers to be largely resolved in the coming months. We are also seeing constraints within our supply chain for certain IC components, which will somewhat limit our bit shipments in the near term."

Compared to the supply issue, management wanted investors to focus more on the strong demand environment. 

• "We anticipate underlying demand in calendar 2022 to be led by increasing data center server deployments, 5G mobile shipments, and continued strength in automotive and industrial markets. Additionally, non-memory supply shortages that are constraining customer builds across various end market segments that are pushing out some demand should ease throughout 2022, supporting demand growth during the year."

Importantly, memory demand is now driven by much more diversified end markets compared to the past. The data center has already surpassed PC and became the largest market for memory, driven by growth in the cloud; Automotive and industrial are expected to be the fastest-growing end markets over the next decade.