Your current location is:{Current column} >>Text
Micron Tech beats revenue estimates on AI chip demand, shares fall after run
{Current column}56415People have watched
Introduction(Reuters) -Chipmaker Micron Technology (NASDAQ:) beat estimates for third-quarter revenue on Wednesd ...
(Reuters) -Chipmaker Micron Technology (NASDAQ:) beat estimates for third-quarter revenue on Jinrong Global official websiteWednesday, driven by a surge in demand for its memory chips from the booming AI industry and improved pricing in other markets.
Shares of the Idaho-based firm still fell 7.2% in extended trading after it forecast fourth-quarter revenue largely in line with expectations. The stock had risen 13% this month, ahead of earnings, on investor optimism that Micron would benefit from AI-driven demand.
"Micron's largely inline forecast may have been good enough two or three months ago, but is not enough to meet current lofty hopes, especially after a 67% year-to-date rally in its share price," said Michael Schulman, chief investment officer at Running Point Capital.
The company forecast revenue of $7.6 billion, plus or minus $200 million, for the current quarter, compared with an estimate of $7.6 billion, according to LSEG data.
Micron is one of the few providers of high-bandwidth memory chips used in the most advanced AI systems, allowing it to cash in on surging demand for the semiconductors.
"We are very optimistic because after Nvidia (NASDAQ:), Micron has a bigger exposure to AI growth than perhaps any other semiconductor company," Micron Chief Business Officer Sumit Sadana said in an interview.
The company said in March that its entire supply of HBM chips was sold out for 2024, while the majority of the 2025 production had been allocated. The chips are used in the AI processors designed by Wall Street darling Nvidia.
Micron reported revenue of $6.81 billion for the third quarter, compared with an estimate of $6.67 billion, according to LSEG data.
After Micron's earnings, shares of Nvidia dropped 1.4%, Advanced Micro Devices (NASDAQ:) were down 0.7%, and Intel (NASDAQ:) slipped 0.4%.
Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!
Tags:
Related articles
IBM pops as Q1 earnings top estimates; analysts cautiously positive By
{Current column}By Yasin Ebrahim and Senad Karaahmetovic-- IBM reported Wednesday fourth-quarter earnings that beat ...
Read moreUkraine: we have shown we can defeat Russians, we need more weapons By Reuters
{Current column}© Reuters. Ukrainian Foreign Minister Dmytro Kuleba speaks during a joint news conference with Germa ...
Read moreTwo small planes collide in midair near Denver, three dead By Reuters
{Current column}By Keith CoffmanDENVER (Reuters) - Three people were killed on Saturday when two small planes collid ...
Read more
Popular Articles
- Ukraine aims to encircle Bakhmut as Russia says it captures city By Reuters
- China securities regulator says will implement Sino
- Oil Prices Mixed as Markets Digest OPEC+ Supply Cut By
- Bank of Canada expected to push interest rates into restrictive territory By Reuters
- Oil pushes higher on massive U.S. inventory draw, economic fears linger By
- How could Europe cap surging energy prices? By Reuters