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Micron Technology Inc. (NASDAQ: MU) reported stronger-than-expected results for its fiscal fourth quarter on Wednesday, driven by surging demand for memory chips used in artificial intelligence (AI) applications. The company’s guidance for the current quarter also exceeded analysts' estimates, sending shares up around 8% in after-hours trading.
The Boise, Idaho-based semiconductor company posted adjusted earnings of $1.18 per diluted share on revenue of $7.75 billion for Q4, as discussed in this report from their site. This surpassed Wall Street expectations, where analysts polled by Investing.com had anticipated adjusted earnings of $1.11 per share on revenue of $7.65 billion according to this article from Morningstar.
AI Demand Drives Growth in Data Center Memory Products
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Micron credited the strong performance to growth in AI-related chip demand. "Robust AI demand drove a strong ramp of our data center DRAM products and our industry-leading high bandwidth memory," Micron said in a statement.
As AI applications increasingly rely on advanced memory technologies, Micron has positioned itself as a key supplier of data center products that support high-performance computing. The surge in AI-focused memory chip sales comes as tech companies continue investing in AI infrastructure, fueling demand for Micron’s DRAM and high-bandwidth memory products.
Upbeat Guidance for Q1
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Looking ahead to the first quarter, Micron provided guidance for adjusted earnings per share in the range of $1.74, plus or minus $0.08, on revenue of $8.70 billion, give or take $200 million. In lieu of CNBC's news, these projections are well above current market expectations, which forecast adjusted EPS at $1.58 on revenue of $8.35 billion.
The positive Q1 guidance underscores the company’s confidence in sustained demand from the AI sector and data centers, as well as its ability to capitalize on industry trends. Micron’s focus on AI and data-intensive applications marks a strategic shift in its business, aligning with a broader market trend toward technologies that require advanced memory solutions.
Shares Surge Following Earnings Report
Following the strong earnings and positive guidance, Micron's shares closed the regular session at [closing price] and climbed approximately 8% in after-hours trading. The market’s reaction highlights investor optimism about the company's role in the rapidly growing AI and data center markets.
Photo by John Schnobrich on Unsplash
About Micron Technology Inc.
Micron Technology is a leading producer of memory and storage solutions for computing, networking, and mobile devices. With a focus on data-intensive applications, Micron plays a pivotal role in the development of AI, cloud computing, and edge technologies.
