by Micron Stock (MU) rose with 17% for the bell on Thursday after the chip maker predicted higher than expected income for the coming quarter.
Micron projected the turnover of the first quarter of $ 8.5 billion to $ 8.9 billion, above the anticipated analysts of $ 8.3 billion.
Managers attributed the increased guidelines to a more favorable price environment and the robust demand for Micron’s memory chips used in data centers to feed artificial intelligence.
“With the arrival of AI we are in the most exciting period I have seen for memory and storage in my career,” said CEO Sanjay Mehrotra during a phone call on Wednesday afternoon. Mehrotra said that the company enters the 2025 financial year with ‘the best competitive positioning in the history of Micron’.
Executives now expect the market for high-bandwidth memory (HBM) chips used in AI data centers, increased to $ 25 billion in 2025, an increase of $ 5 billion this year-and an increased demand for its HBM chips To get several billions of dollars next year.
Analysts at Wedbush, JPMorgan, TD Cowen and Raymond James repeated their outper formation of the shares, encouraged by Micron’s comments about AI question and recovery in his more traditional markets. For example, they pointed to repairing the demand for micron memory chips from PC and smartphone manufacturers.
Matt Bryson van Wedbush said that the prospects of Micron ‘first quarter’ reflect our conviction that the overall memorial dynamics will probably improve considerably “after the start of next year.
Raymond James -analysts said: “HBM -question remains strong and Micron appears firmly on schedule to achieve his goals.”
Micron is the first chip maker to report this profit season of quarterly results. The report gives a first glance at how the semiconductor sector goes in the midst of high expectations of Wall Street.
The company reported a turnover of $ 7.75 billion in its fiscal fourth quarter ending on August 29 – 93% higher than last year and exceeded the $ 7.66 billion expected by analysts, who recently mitigated their expectations. Adapted profit per share of $ 1.18 also exceeded both the top range of Micron’s guidance and the $ 1.11 prediction by Wall Street.
Micron’s memory chip activities have undergone a revival in the past year, because large technology companies pour billions in the semiconductor sector for hardware to power AI data centers.
Micron distinguishes itself by working together with, instead of competing against Superpower Nvidia (NVDA) in the industry. Micron delivers memory chips for Nvidia’s fierce requirements GPUs.
