Micron
Technology posted better-than- expected results for its November quarter, sending the stock higher in premarket trading Thursday.
The chip company’s management team was also optimistic that generative AI would spark rising demand for memory chips over the next several years.
Micron reported an adjusted loss of 95 cents a share for its fiscal first quarter, compared with the consensus call for a loss of $1.01 among analysts tracked by FactSet. Revenue came in at $4.73 billion for the period, which was slightly above analysts’ expectations for $4.58 billion.
For the current quarter,
Micron
offered a revenue forecast of $5.3 billion at the midpoint of its range, which was also above the consensus of $4.97 billion.
“Micron’s strong execution and pricing drove better-than-anticipated first quarter financial results,” Micron Technology CEO Sanjay Mehrotra said in the news release. “We expect our business fundamentals to improve throughout 2024.”
Micron shares were up 6.3% early Thursday.
The company is a leader in the semiconductor markets for dynamic random-access memory, which is used in desktop computers and servers, and for flash memory, which is found in smartphones and solid-state hard drives.
On the conference call with investors, Micron management said generative AI would drive a “multiyear growth” phase for the company, leading to a record for the memory industry market in 2025. The company also said that inventory levels for memory and storage are near “normal” across the PC and mobile markets.
Micron also said the company is in the final stages of qualifying its advanced HBM3E memory chips for
Nvidia’s
coming H200 AI product.
Write to Tae Kim at [email protected]
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