Micron Technology, a leading chipmaker, saw its shares decline by 12% in extended trading following the release of weaker-than-expected second-quarter guidance. Despite an earnings beat, the company’s revenue and adjusted earnings per share were in line with analysts’ expectations.
For the second quarter, Micron projected revenue of $7.9 billion, plus or minus $200 million, and adjusted earnings per share of $1.43, plus or minus 10 cents. Analysts had forecasted revenue of $8.98 billion and EPS of $1.91.
The company’s shares have gained 22% year to date, outperforming the Nasdaq’s 29% gain. In its earnings report, Micron highlighted growth areas in data centers and artificial intelligence ventures with Nvidia’s processors.
CEO Sanjay Mehrotra expressed confidence that consumer-oriented markets will return to growth in the second half of the fiscal year, citing the company’s position to leverage AI-driven growth and create substantial value for all stakeholders.
Source: https://www.cnbc.com/2024/12/18/micron-shares-plunge-on-weak-second-quarter-guidance.html