Micron Technology (NASDAQ: MU) stock plummeted in pre-market trading Thursday after the chipmaker missed third-quarter profit estimates and provided weak revenue guidance.
Micron Technology posted impressive financial results for the fiscal third quarter of 2024, with revenue reaching $6.81 billion, marking an increase of over 81% compared to the year-ago period. This figure also surpassed analysts’ expectations compiled by Visible Alpha.
In addition, the semiconductor giant reported a net income of $332 million for the quarter, a substantial turnaround from the $1.9 billion loss in the year-ago period. However, this net income figure fell short of analysts’ estimates. Diluted earnings per share came in at 30 cents, meeting estimates.
CEO Sanjay Mehrotra highlighted the company’s strong performance, attributing it to robust AI demand and effective operational execution. Mehrotra stated,
“Robust AI demand and strong execution enabled Micron to drive 17% sequential revenue growth, exceeding our guidance range in fiscal Q3.”
He added,
“We are gaining share in high-margin products like High Bandwidth Memory (HBM), and our data center SSD revenue hit a record high, demonstrating the strength of our AI product portfolio across DRAM and NAND.”
Looking ahead, Micron forecasts revenue of $7.6 billion for the final quarter of fiscal 2024, consistent with projections from Visible Alpha. However, J.P. Morgan and Citi analysts had anticipated higher figures, suggesting potential investor expectations might be higher than current guidance.
Micron (NASDAQ: MU) Stock Price Action
As of 08:16 a.m. (Eastern Time) Thursday, MU stock traded at $134.06, marking a 5.83% decrease compared to the previous trading session.
