Micron Technology President and CEO Sanjay Mehrotra attends the WEF on May 24, 2022 in Davos, Switzerland.
Adam Gallica | CNBC
micron The company’s shares fell 7% in after-hours trading on Wednesday as investors focused on its in-line revenue guidance rather than better-than-expected results.
Here’s how LSEG’s results for the third quarter ended May 30 compare to consensus forecasts:
- Earnings per Share: Adjusted 62 cents, expected 51 cents
- Revenue: $6.81 billion (prediction: $6.67 billion)
Micron, which makes computer memory and storage, said it expects adjusted earnings per share of $1.08 on sales of $7.6 billion for the current quarter. Analysts were expecting earnings of $1.05 per share on sales of $7.6 billion.
The company has been riding the artificial intelligence boom, with its stock price more than doubling in the past year. Micron’s cutting-edge memory is needed for AI graphics processing units (GPUs), such as: NVIDIAThis positions the company to benefit from demand for its technology to train and deploy AI applications like OpenAI’s ChatGPT.
Micron reported net income of $332 million, or 30 cents a share, compared with a net loss of $1.9 billion, or $1.73 a share, in the year-ago period.
Micron CEO Sanjay Mehrotra said in a statement that the company’s smartphone and PC markets remain weak, but highlighted the company’s AI business.
Mehrotra said the company’s AI-related products are likely to become more expensive and that its data center business has grown 50% quarterly.
“Strong AI-driven demand for data center products is creating supply shortages for our most advanced nodes,” Mehrotra said in a statement. “As a result, while near-term demand for PCs and smartphones remains stable, we expect prices to continue to increase through 2024.”
Micron said on a conference call with analysts that the high-bandwidth memory used in its AI chips will be sold out by 2025.
“We believe Micron will be one of the largest beneficiaries in the semiconductor industry from the multiyear growth opportunity driven by AI,” Mehrotra said.
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