Robust Q2 Performance Surpasses Estimates
Micron Technology exceeded Wall Street projections for its fiscal second quarter, driven by strong demand in the data-center sector. The company reported an adjusted profit of $1.56 per share on revenue of $8.05 billion for the quarter ending February 27. Analysts surveyed by FactSet had anticipated earnings of $1.43 per share on revenue of $7.9 billion. Compared to the same period last year, when Micron posted earnings of 42 cents per share on $5.82 billion in sales, the company achieved a significant 38% year-over-year revenue increase. Notably, revenue from its high-bandwidth memory (HBM) products surpassed the $1 billion milestone, highlighting the growing market demand for advanced memory solutions.
Optimistic Outlook for Q3 Drives Stock Surge
Micron’s forecast for the current quarter also outpaced analyst expectations. The company projects adjusted earnings of $1.57 per share on revenue of $8.8 billion, based on the midpoint of its guidance. Wall Street had estimated earnings of $1.52 per share on revenue of $8.48 billion. In the same quarter last year, Micron Exceeds Expectations reported earnings of 62 cents per share on revenue of $6.81 billion, marking a substantial improvement. Following the earnings announcement, Micron’s stock surged over 5% in after-hours trading, reaching $108.40.
During regular trading hours, the stock had already climbed 0.9%, closing at $103. Micron’s leadership expressed confidence in achieving record quarterly revenue in fiscal Q3, citing rising demand for DRAM and NAND chips across both data-center and consumer-oriented markets.
AI Boom Fuels Memory Chip Demand
Micron Exceeds Expectations specializes in two primary types of memory chips: DRAM, which serves as the main memory in PCs, servers, and other computing devices, and NAND flash, which provides long-term data storage. The company credited its record-breaking data-center DRAM sales to surging demand from artificial intelligence applications. As AI-driven workloads expand, the need for high-performance memory solutions has intensified, positioning Micron for continued growth. The company ranks second among ten stocks in the Computer-Data Storage industry group, according to IBD’s Stock Checkup, with an IBD Composite Rating of 75 out of 99. Looking ahead, Micron remains optimistic about maintaining its upward trajectory, projecting record revenue and significantly improved profitability in fiscal 2025.
