🚀 Micron Technology grows after beating estimates and achieving windfall profits, thanks to the rise of artificial intelligence! 💡
Memory chip maker, Micron Technology $MU, just stunned Wall Street with its performance in its second fiscal quarter, achieving a surprising profit. It is forecasting even better results for the current period, which is linked to an increase in revenue thanks to investments in artificial intelligence infrastructure. Micron shares are literally flying up today, currently earning more than 16 %.
The company, based in Boise, Idahohas recorded a modified profit of 42 cents per share on sales of $5.82 billion. That beat analysts' estimates, who had expected a loss of 25 cents per share on sales $5.35 billion. That's a truly amazing improvement from last year, when Micron announced a loss of $1.91 per share on sales $3.69 billion.
The company's outlook is also interesting. For the current quarter Micron is forecasting an adjusted earnings of 45 cents per share on sales $6.6 billion. That's a huge jump from analysts who were expecting earnings of 9 cents per share on sales $6 billion.
It is also interesting to note that prior to this news ,Micron had suffered five quarterly losses due to the cyclical downturn. But now it looks like it's on the rise again!
"We are confident that Micron is one of the biggest opportunities that artificial intelligence offers the semiconductor industry." said CEO Sanjay Mehrotra.
Micron is also benefiting from the growing demand for AI infrastructure, thanks to its high-throughput memory chips such as itsHBM3e products . And it's not justMicron that's thriving in this environment. As spending on AI infrastructure grows, so does competition in sales of high-throughput memory chips for data centers, where Micron is taking on giants like Samsung $SMSN.L+2.0% and SK Hynix $HY9H.F.
Micron is on the rise and looks like it has a bright future ahead of it! 💰
What's your opinion of this company, and which memory manufacturer do you have in your portfolio?