Shares of Micron surged by over 14% in after-hours trading on Wednesday following the release of its second-quarter fiscal 2024 results, which surpassed analysts’ expectations and included optimistic guidance.
The company, renowned for its production of memory and storage solutions for computers, attributed its success to the ongoing artificial intelligence boom.
Here’s a breakdown of Micron’s performance:
- Adjusted earnings per share stood at 42 cents, compared to the anticipated 25-cent loss forecasted by LSEG, formerly known as Refinitiv.
- Revenue amounted to $5.82 billion, exceeding the $5.35 billion projection by LSEG.
Micron disclosed that its revenue had surged from $3.69 billion in the corresponding quarter of the previous year to $5.82 billion in the current period. Moreover, the company reported a net income of $793 million, marking a significant improvement from the net loss of $2.3 billion recorded in the same period last year.
Anticipating its fiscal third quarter, Micron foresees revenue reaching $6.6 billion, surpassing analysts’ expectations of $6.02 billion.
Micron’s CEO, Sanjay Mehrotra, expressed confidence in the company’s position, stating, “We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI.”
Micron has a longstanding reputation for supplying memory and flash storage solutions for a wide array of devices, including computers, data centers, and smartphones.
With the burgeoning demand for AI-driven applications, particularly in large data centers, Micron continues to play a pivotal role.
While Nvidia garners significant attention for its graphics processing units that power AI operations, companies like Micron contribute by providing essential memory and storage components for these systems.
