From Yahoo Finance: 2025-03-21 09:33:00

Micron Technology Inc. saw a drop in shares after reporting that margins will fall short of analysts’ estimates this quarter. Gross margins were 37.9% in Q2, missing the 38.4% estimate. The current period forecast is around 36.5%, below expectations due to NAND flash memory pricing challenges.

Despite margin concerns, Micron forecasts strong sales in Q3, with revenue expected to reach $8.8 billion, beating the $8.55 billion estimate. Profit is projected to be about $1.57 per share, higher than the $1.48 analysts predicted on average. Demand for AI products is driving growth.

Micron’s sales in Q2 rose 38% to $8.05 billion, surpassing the $7.91 billion estimate. Earnings reached $1.56 per share, exceeding the $1.43 prediction. Data center revenue tripled from last year, indicating a positive outlook for record revenue and improved profitability in fiscal 2025.

The company’s high-bandwidth memory (HBM) has become crucial for AI systems, generating over $1 billion in revenue in Q2. Micron’s focus on AI technology and data center components is paying off, with strong execution and robust demand contributing to their success.



Read more at Yahoo Finance: Micron’s Shares Fall After Memory Chip Pricing Hits Margins