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Micron Technology witnessed a significant surge of over 14% in extended trading on Wednesday following the release of its second-quarter fiscal 2024 results, which surpassed analysts’ expectations and included optimistic guidance. The company, known for manufacturing memory and storage solutions for computers, attributed its success to the ongoing artificial intelligence (AI) boom.
Here are the key highlights of Micron’s performance:
- Earnings per Share (EPS): Adjusted EPS stood at 42 cents, surpassing the 25 cent loss expected by LSEG, formerly known as Refinitiv.
- Revenue: Micron reported revenue of $5.82 billion, exceeding the $5.35 billion expected by LSEG.
Micron noted a significant increase in revenue compared to the same quarter last year, with revenue soaring from $3.69 billion to $5.82 billion. The company also reported a net income of $793 million, a notable improvement from the net loss of $2.3 billion reported in the corresponding period of the previous year.
Looking ahead to its fiscal third quarter, Micron anticipates reporting revenue of $6.6 billion, surpassing analysts’ expectations of $6.02 billion.
Micron’s CEO, Sanjay Mehrotra, emphasized the company’s position as a major beneficiary in the semiconductor industry amid the multi-year opportunity facilitated by AI. Mehrotra stated in a release, “We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI.”
While Nvidia often garners attention for its graphics processing units (GPUs) used in AI applications, Micron plays a crucial role by providing the memory and storage solutions necessary for these systems. Micron has a long-standing reputation for supplying memory and flash storage solutions for computers, data centers, and smartphones.
The surge in demand for AI-driven technologies has led to an increased reliance on large data centers, which require robust memory and storage solutions. Micron stands to benefit from this trend, as its products play a vital role in powering AI-driven applications and systems.
The company’s strong performance underscores its resilience and strategic positioning within the semiconductor industry, particularly in the burgeoning AI market.