Micron shares enjoy strong outlook driven by ‘robust AI demand’

Key recommendations

• Shares of Micron Technology rose in extended trading on Wednesday as the memory chip maker’s revenue and outlook beat expectations.

• Partner Nvidia reported that its fourth-quarter fiscal revenue doubled year-over-year on the back of “strong AI demand.”

• CEO Sanjay Mehrotra said the company expects revenue for the current quarter to hit a record high.

Micron Technology (MU) shares rose in extended trading Wednesday as the company’s earnings and outlook beat expectations.

Memory chip maker and Nvidia (NVDA) partner posted a profit of $887 million, or 79 cents per share, in the fiscal fourth quarter, down from a loss of $1.43 billion, or $1.31 per share, a year ago. Revenue nearly doubled to $7.75 billion, beating analysts’ estimates.

Micron CEO Sanjay Mehrotra said the revenue gains were driven by “strong AI demand” and that the company heads into fiscal 2025 “with the best competitive position in Micron’s history.”

Micron projects record Q1 revenue

Micron said it expects current-quarter revenue to reach a record $8.5 billion to $8.9 billion, with the lower end of the range above analysts’ consensus. The company’s forecast for diluted earnings per share (EPS) of $1.46 to $1.62 also beat estimates.

Micron shares rose more than 13 percent to $108.34 in extended trading Wednesday after the release.

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