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Micron inventory pops 14% on earnings beat pushed by AI increase

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The Micron Know-how headquarters in Boise, Idaho, on March 28, 2021.

Jeremy Erickson | Bloomberg | Getty Photographs

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Shares of Micron popped greater than 14% in prolonged buying and selling on Wednesday after the corporate introduced second-quarter fiscal 2024 results that beat analysts and supplied rosy steering. The corporate, which makes reminiscence and storage for computer systems, stated it has benefitted from the unreal intelligence increase.

Here is how the corporate did:

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  • Earnings per share: 42 cents adjusted vs. 25 cent loss anticipated by LSEG, previously generally known as Refinitiv.
  • Income: $5.82 billion vs. 5.35 billion anticipated by LSEG.

Micron stated income rose to $5.82 billion from $3.69 billion within the yr in the past quarter. The corporate reported a web earnings of $793 million, up from a web lack of $2.3 billion in the identical interval final yr.

For its fiscal third quarter, Micron expects to report income of $6.6 billion, above the $6.02 billion anticipated by analysts.

“We imagine Micron is without doubt one of the greatest beneficiaries within the semiconductor business of the multi-year alternative enabled by AI,” Micron CEO Sanjay Mehrotra stated in a launch.

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Micron has lengthy offered reminiscence and flash storage for computer systems, knowledge facilities and telephones. Giant knowledge facilities are used to energy the inflow of latest AI software program. Whereas Nvidia has grabbed a lot of the highlight for its graphics processing models that run AI, firms like Micron profit by offering the reminiscence and storage for these techniques.

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