Micron Soars in After-Hours Trading After Impressive Q1 Guidance

Micron Technology Inc. recently announced impressive guidance for the current quarter after its fiscal fourth-quarter results exceeded analyst expectations, driven by a surge in demand for memory chips fueled by artificial intelligence.

Following the announcement, Micron’s shares experienced a rise of approximately 8% in after-hours trading.

The company reported adjusted earnings of $1.18 per diluted share for the fourth quarter, along with revenue of $7.75 billion. Analysts had anticipated an adjusted earnings per share (EPS) of $1.11 and revenue of $7.65 billion.

Micron attributed its stronger-than-expected performance to robust demand in the AI sector, which led to a significant increase in its data center DRAM products and high bandwidth memory offerings.

Looking ahead to the first quarter, Micron forecasts an adjusted EPS between $1.74, with a variance of $0.08, and a revenue range of $8.70 billion, plus or minus $200 million. This projection surpasses analyst estimates of $1.58 in EPS and $8.35 billion in revenue.