Revenue for the quarter stood at $54.23 billion, higher than the estimate of $51.07 billion. The company’s Earnings per Share (EPS) of $33.42 was also higher than the $31.61 figure that analysts were anticipating. On a year-on-year basis, Micron’s revenue saw a 4x jump fueled by the AI building frenzy. The company is the largest memory chip manufacturer in the US.
For the ongoing quarter, Micron sees revenue at $61.5 billion, well above the analyst estimate of $56.8 billion on average. EPS is also seen at $38.15, well above the $36.02 estimate.
However, the stock also saw fluctuating moves after the company warned of a marginal decline in gross margins. A major reason behind this is the increased worker pay. This was also confirmed by CFO Mark Murphy in the earnings call where is said that the decision to increase incentive compensation has been made.
Micron’s DRAM or Dynamic Random-Access Memory revenue increased by 343% from the year-ago period to $39.8 billion, and contributed to 73% of the overall sales. The company is also the only US-based manufacturer of high-bandwidth memory (HBM) and CEO Sanjay Mehrotra said that they have a strong roadmap for future HBM products.
The company is also investing $250 billion to build two new campuses to manufacture HBM, one in New York and the other in Idaho, which will come online next year.
Shares of Micron have risen 240% so far this year, and have surged 540% over the last 12 months.(With Inputs From Agencies)