Shares of Micron pop 14% on earnings beat driven by AI boom

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Micron’s shares increased by over 14% in extended trading on Wednesday, following the company’s second-quarter fiscal 2024 results, which exceeded expectations and provided optimistic forecast. The firm, which provides computer memory and storage, claimed to have benefited from the artificial intelligence boom.

Here’s how the company performed:

. Earnings per share: were 42 cents adjusted, compared to a 25-cent loss projected by LSEG, formerly known as Refinitiv.
. Revenue: was $5.82 billion, compared to LSEG’s estimate of $5.35 billion.

Micron reported revenue of $5.82 billion, up from $3.69 billion the previous year. The corporation posted a net income of $793 million, compared to a $2.3 billion loss in the same period previous year.

Micron intends to announce sales of $6.6 billion in the fiscal third quarter, which is higher than analysts’ expectations of $6.02 billion.

“We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI,” Micron CEO Sanjay Mehrotra stated in a press release.

Micron has long been a provider of memory and flash storage for PCs, data centers, and smartphones. Large data centers are being deployed to handle the influx of new AI software. While Nvidia has received great attention for its graphics processing units that power AI, firms like Micron benefit by providing memory and storage for similar systems.