International Courant
Sanjay Mehrotra, president and CEO of Micron Know-how on the WEF in Davos, Switzerland on Might 24, 2022.
Adam Galica | CNBC
Micron Shares fell about 7% in prolonged buying and selling on Wednesday as traders regarded previous better-than-expected outcomes and targeted as a substitute on a income forecast that was in keeping with estimates.
This is how the corporate fared in comparison with LSEG consensus estimates for the fiscal third quarter ended Might 30:
EPS: 62 cents adjusted vs. 51 cents expectedRevenue: $6.81 billion vs. $6.67 billion anticipated
Micron, which makes pc reminiscence and storage, expects adjusted earnings per share of $1.08 on income of $7.6 billion for the present quarter. Analysts had anticipated earnings per share of $1.05 on income of $7.6 billion.
Shares have greater than doubled prior to now 12 months as the corporate rides the wave of synthetic intelligence. Micron’s most superior reminiscence is required for AI graphics processing models (GPUs). Nvidiasenabling the corporate to capitalize on the demand for know-how to coach and deploy AI purposes reminiscent of OpenAI’s ChatGPT.
Micron reported web revenue of $332 million, or 30 cents per share, versus a web lack of $1.9 billion, or $1.73 per share, within the year-ago quarter.
Micron CEO Sanjay Mehrotra highlighted the corporate’s AI actions in a press release, saying the smartphone and PC markets stay sluggish.
Mehrotra mentioned the corporate’s AI-oriented merchandise are more likely to improve in value and the corporate’s information heart enterprise will develop 50% quarter to quarter.
“Sturdy AI-driven demand for information heart merchandise is making a squeeze on our main nodes,” Mehrotra mentioned in a press release. “In consequence, we count on continued value will increase all through the 2024 calendar 12 months, regardless of solely secure demand for PCs and smartphones within the close to time period.”
On a name with analysts, Micron mentioned its high-bandwidth reminiscence, the sort utilized in AI chips, will promote out till 2025.
“We imagine Micron will probably be one of many semiconductor business’s greatest beneficiaries of the multi-year progress alternatives powered by AI,” mentioned Mehrotra.
WATCH: Micron CEO on CHIPS Act grant
Micron shares fall after income forecasts fall in need of expectations
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