Micron reports strong earnings driven by AI demand, but cautious outlook leads to stock drop.

From Nasdaq: 2024-06-27 10:50:00

Micron Technology Inc. reported strong earnings for Q3 2024, fueled by AI demand but gave a cautious near-term outlook, leading to a pre-market stock price drop. Revenue reached $6.81 billion, a notable 81% YoY increase, with a $332 million net income and $0.30 EPS, meeting analyst expectations.

Micron’s success is attributed to HBM sales and data center SSD revenue growth, illustrating leadership in AI products. The company’s forward guidance for Q4 FY2024 forecasts $7.6 billion in revenue and $1.08 EPS, signaling sustained growth and focus on AI-driven products for fiscal 2025.

Analysts are optimistic about Micron’s AI-driven growth but cautious about future challenges. KeyBanc and JPMorgan analysts highlight the potential for profit margin expansion and continued stock outperformance, while UBS analysts raise concerns about demand fluctuations and industry volatility.

Micron faces challenges such as market competition, supply chain disruptions, and AI demand fluctuations. Navigating these risks requires strategic innovation and efficient supply chain management to capitalize on AI growth potential despite uncertainties in the semiconductor landscape.



Read more at Nasdaq:: Micron’s Stock: AI Fuels Growth, But Outlook is Cautious