Sanjay Mehrotra, President and CEO of Micron Technology, on the WEF in Davos, Switzerland, on May 24, 2022.
Adam Galica | CNBC
micron Shares fell about 7% in prolonged trading Wednesday as investors looked past better-than-expected results and as an alternative focused on a revenue forecast that met estimates.
Here’s how the corporate performed in comparison with LSEG consensus estimates for the third fiscal quarter ended May 30:
- Earnings per share: 62 cents adjusted in comparison with 51 cents expected
- revenue: $6.81 billion versus expected $6.67 billion
Micron, a manufacturer of computer memory and storage, expects adjusted earnings per share of $1.08 on sales of $7.6 billion in the present quarter. Analysts had expected earnings per share of $1.05 on sales of $7.6 billion.
Shares have greater than doubled up to now 12 months as the corporate rides the boom in artificial intelligence. Micron’s most advanced memory is required for AI graphics processing units (GPUs), akin to Nvidia’sallowing the corporate to capitalize on demand for technology to coach and deploy AI applications akin to OpenAI’s ChatGPT.
Micron reported net income of $332 million, or 30 cents per share, compared with a net lack of $1.9 billion, or $1.73 per share, within the year-ago quarter.
Micron CEO Sanjay Mehrotra highlighted the corporate’s AI business in a press release, while saying the corporate’s smartphone and PC markets continued to be sluggish.
Mehrotra said prices for the corporate’s AI-focused products were prone to increase and that the corporate’s data center business grew 50% quarter-on-quarter.
“Strong AI-driven demand for data center products is creating shortages at our leading-edge nodes,” Mehrotra said in a press release. “Consequently, we expect sustained price increases throughout calendar year 2024, although near-term demand for PCs and smartphones is only flat.”
In a conference call with analysts, Micron said its high-bandwidth memory, akin to that utilized in AI chips, could be sold out by 2025.
“We believe Micron will be one of the biggest beneficiaries of the multi-year growth opportunities created by AI in the semiconductor industry,” Mehrotra said.
REGARD: Micron CEO on CHIPS Act grant
