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Micron Earnings Forecast: Micron Technology projected second-quarter adjusted earnings on Wednesday that significantly exceeded analysts’ expectations.
The company cited rising prices for memory chips as a key factor behind the upbeat outlook. Supply constraints across the memory market have pushed pricing higher.
At the same time, demand from artificial intelligence data centers has expanded rapidly.
Investors reacted positively to the forecast. Shares of the Boise, Idaho-based chipmaker jumped 14% in after-hours trading.
Micron Technology on Wednesday projected adjusted earnings of $8.42 a share for the coming quarter. The company said results could vary by about 20 cents in either direction.
Wall Street had been expecting a profit of $4.78 per share, based on LSEG estimates. Micron supplies memory chips used across a wide range of products.
Those chips power data center servers, personal computers, smartphones, and automobiles. The company also plays a critical role in the high-bandwidth memory market.
Only SK Hynix and Samsung Electronics of South Korea compete with Micron at scale in this category.
High-bandwidth memory is essential for building and running generative artificial intelligence models. The company said demand from data centers remains robust.
Spending by large cloud computing providers has increased sharply. These companies deliver hardware infrastructure and cloud services at scale.
For the current quarter, the company expects revenue of about $18.70 billion. The forecast includes a margin of error of $400 million on either side.
Wall Street analysts had been projecting average revenue of $14.20 billion, according to LSEG figures.
Micron Technology delivered results above market expectations in its latest fiscal first quarter. The company recorded revenue totaling $13.64 billion.
Adjusted earnings reached $4.78 per share for the period. Wall Street had anticipated sales of $12.85 billion.
Profit estimates had stood at $3.95 per share. The analyst consensus was based on data from LSEG.
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