Micron Technology, a U.S. memory semiconductor company, reported earnings that surpassed market expectations for the last quarter, driven by strong demand for memory used in artificial intelligence (AI) servers.
On June 24, local time, Reuters reported that Micron's fiscal third-quarter revenue reached $41.46 billion, exceeding Wall Street's forecast of $35.85 billion, according to data from LSEG.
The adjusted earnings per share (EPS) stood at $25.11, surpassing the expected $20.78.
Looking ahead, Micron raised its revenue forecast for the fiscal fourth quarter to $50 billion, with a margin of error of plus or minus $1 billion. This is above Wall Street's estimate of $43.58 billion.
The company also projected an adjusted EPS of $31 for the fourth quarter, with a margin of error of plus or minus $1, compared to the market expectation of $25.84.
The improvement in performance and outlook is attributed to increased memory demand stemming from expanded investments in AI data centers. Notably, the demand for high-bandwidth memory (HBM), used alongside AI semiconductors, has outstripped production capacity, leading to ongoing supply shortages.
Micron anticipates that the tight supply-demand situation in the memory market, driven by AI demand and structural supply constraints, will persist until at least 2027. The focus on expanding HBM production is tightening the supply of standard DRAM and NAND as well.
"We expect gradual improvements in industry supply by 2028, but it is currently unclear when memory supply will catch up with increasing demand," said Sanjay Mehrotra, Micron's CEO.
To address demand, Micron plans to increase capital expenditures, projecting spending of about $10 billion in the next quarter, exceeding market expectations of $8.89 billion.
Following the earnings announcement, Micron's stock surged over 15% in after-hours trading.
* This article has been translated by AI.
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