Breaking News: Micron (NASDAQ:) Surges 14% After Smashing Analysts' Expectations with Strong Guidance for Q1
Micron's stock soared by over 14% in after-hours trading on Thursday as the chipmaker revealed guidance for the current quarter that exceeded analysts' predictions. The company expects adjusted per-share income of $1.74, with revenue of $8.70 billion for the fiscal first quarter, far surpassing Wall Street estimates.
Micron, along with SK Hynix and Samsung Electronics, is a major player in the high-bandwidth memory (HBM) chips market, which are crucial for AI applications. Strong demand for HBM has helped offset oversupply in other chip markets affected by economic uncertainty.
Analysts at Stifel praised Micron's guidance, noting that data center demand is compensating for weakness in PC and smartphone markets. The company's upbeat outlook indicates that the memory cycle is stable.
In the previous quarter, Micron reported adjusted earnings of $1.18 per share on revenue of $7.75 billion, exceeding analysts' expectations. This positive performance has boosted investor confidence in the company's future prospects.
In conclusion, Micron's impressive guidance and strong market position suggest that it is well-positioned for continued growth in the semiconductor industry. Investors should take note of Micron's success and consider the potential for future gains in this sector.