Micron Technology’s (MU) stock is up 18% after the chipmaker released quarterly results that showed its revenue quadrupled from a year earlier.
Micron reported fiscal third quarter earnings per share (EPS) of $25.11 U.S., which blew past Wall Street forecasts of $20.78 U.S.
Revenue of $41.46 billion U.S. also soared past consensus estimates of $35.84 billion U.S. Sales were up 345% from $9.3 billion U.S. a year earlier.
Management said that Micron continues to benefit from soaring demand for its memory chips that are critical for running artificial intelligence (A.I.) workloads.
Looking ahead, the company said that it expects revenue of $50 billion U.S. in the current quarter, up from $11.3 billion U.S. a year earlier.
Wall Street had revenue of $43.58 billion U.S. penciled in for Micron.
Price for memory chips have skyrocketed in recent years as A.I. data centre demand increases, pushing prices up for microchips used in smartphones, laptop computers and other electronics.
Micron’s technology is essential for microchips made by Nvidia (NVDA) and Alphabet (GOOGL), among other companies.
The soaring demand and strong sales of Micron’s memory chips has pushed the company’s stock up 724% in the last year, giving it a market capitalization of $1.18 trillion U.S.
Micron’s gross margin rose to 84.9% in the company’s fiscal third quarter from 39% a year earlier, beating analyst estimates.
While all four of Micron’s business units saw revenue gains the biggest growth was in the data centre business, where sales rose 651% to $11.5 billion U.S. from $1.53 billion U.S. a year ago.
Revenue from cloud computing memory chip sales increased more than 300% to $13.77 billion U.S. in the latest quarter.
Prior to today (June 25), MU stock had risen 232% this year to trade at $1,047.92 U.S. per share.
Tech Insider
