Micron shares fall after revenue forecast misses top estimates

micron Shares fell nearly 7% in extended trading Wednesday as investors looked past better-than-expected results and instead focused on revenue forecasts that were in line with estimates.

Here's how the company performed versus LSEG's consensus estimates for the fiscal third quarter ended May 30:

Earnings per share: 62 cents adjusted vs. 51 cents expected Revenue: $6.81 billion vs. $6.67 billion expected

Micron, which makes computer memory and storage, said it expects adjusted earnings per share of $1.08 on revenue of $7.6 billion in the current quarter. Analysts had expected earnings per share of $1.05 on revenue of $7.6 billion.

Shares have more than doubled in value in the past year as the company benefits from the artificial intelligence boom. Micron's most advanced memory is needed for AI-powered GPUs NvidiaThis puts the company in a position to capitalize on demand for technology to train and deploy AI applications like OpenAI's ChatGPT.

Micron reported net income of $332 million, or 30 cents per share, versus a net loss of $1.9 billion, or $1.73 per share, in the same quarter last year.

Micron CEO Sanjay Mehrotra highlighted the company's AI business in a statement, while saying the smartphone and PC markets remain sluggish.

Mehrotra said the company's AI-oriented products are likely to rise in price and that the company's data center business grew 50% quarter-on-quarter.

“Strong AI-driven demand for data center products is causing distress on our lead nodes,” Mehrotra said in a statement. “Therefore, we expect price increases to continue throughout calendar 2024 despite only flat near-term demand for PCs and smartphones.”

On a call with analysts, Micron said its high-bandwidth memory, of the type used in AI chips, will be sold through 2025.

“We believe Micron will be one of the semiconductor industry's biggest beneficiaries of multi-year growth opportunities led by AI,” Mehrotra said.

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