Micron inventory pops 14% on earnings beat pushed by AI growth

Shares of Micron popped greater than 14% in prolonged buying and selling on Wednesday after the corporate introduced second-quarter fiscal 2024 results that beat analysts and supplied rosy steerage. The corporate, which makes reminiscence and storage for computer systems, stated it has benefitted from the bogus intelligence growth.

Here is how the corporate did:

• Earnings per share: 42 cents adjusted vs. 25 cent loss anticipated by LSEG, previously often called Refinitiv.
• Income: $5.82 billion vs. 5.35 billion anticipated by LSEG.

Micron stated income rose to $5.82 billion from $3.69 billion within the 12 months in the past quarter. The corporate reported a web earnings of $793 million, up from a web lack of $2.3 billion in the identical interval final 12 months.

For its fiscal third quarter, Micron expects to report income of $6.6 billion, above the $6.02 billion anticipated by analysts.

“We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI,” Micron CEO Sanjay Mehrotra stated in a launch.

Micron has lengthy offered reminiscence and flash storage for computer systems, knowledge facilities and telephones. Massive knowledge facilities are used to energy the inflow of latest AI software program. Whereas Nvidia has grabbed a lot of the highlight for its graphics processing models that run AI, firms like Micron profit by offering the reminiscence and storage for these programs.