Micron Technology CEO Sanjay Mehrotra spoke in an interview with CNBC at the New York Stock Exchange (NYSE) in New York City, the United States, on April 26, 2024.
Brendan McDermid | Reuters
Micron The company’s shares fell nearly 8% in after-hours trading on Wednesday as investors shifted away from better-than-expected results and focused instead on revenue forecasts that were in line with expectations.
Here’s how the company compares to the LSEG consensus forecast:
- Earnings per share: Adjusted 62 cents, expected 51 cents
- income: US$6.81 billion, expected US$6.67 billion
Micron Technology, which makes computer memory and storage, said it expected adjusted earnings per share of $1.08 in the quarter on revenue of $7.6 billion. Analysts expected earnings of $1.05 per share and revenue of $7.6 billion.
Its shares have more than doubled in the past year as the company rides the artificial intelligence boom. AI graphics processing units (GPUs) require Micron’s most advanced memory, such as NVIDIAallowing the company to benefit from the need for technology to train and deploy AI applications such as OpenAI’s ChatGPT.
Micron reported net income of $332 million, or a loss of 30 cents a share, compared with a net loss of $1.9 billion, or a loss of $1.73 a share, a year earlier.
Micron CEO Sanjay Mehrotra emphasized the company’s artificial intelligence business in a statement, while saying that its smartphone and PC markets remain sluggish.
Mehrotra said that the company’s AI-oriented product prices may rise, and the company’s data center business grew 50% compared with the previous quarter.
“Strong demand for AI-driven data center products is straining our leading-edge nodes,” Mehrotra said in a statement. “As a result, while near-term demand for PCs and smartphones is stable, we expect continued price increases in 2024.” “
watch: Micron CEO receives CHIPS Act funding
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