Micron projects higher first-quarter sales on AI boom
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The news: Micron Technology forecast fiscal first-quarter revenue of roughly USD 12.5 billion ($18.9 billion), topping analysts’ estimates of about USD 11.9 billion, as demand for AI equipment boosts sales of its memory chips.
The context: Micron is the largest US maker of computer memory chips. Its high-bandwidth memory is critical to chips and systems that develop AI models. It supplies some of Nvidia’s semiconductors, which dominate the AI accelerator market.
The numbers: The company said profit excluding some items will be about USD 3.75 a share, compared with analysts’ projection of USD 3.05, while revenue guidance of USD 12.5 billion was also above the USD 11.94 billion average estimate compiled by LSEG.
Sales in the fiscal fourth quarter, which ended August 28, rose 46% to USD 11.3 billion, above expectations, with earnings of USD 3.03 a share against forecasts of USD 2.84.
Shares rose about 4% in after-hours trading following the results before paring back to be slightly lower.
