Micron Technologies, a leading chipmaker, saw its shares plummet 16% on Thursday after the company issued weaker-than-expected guidance for the second quarter. The stock fell to $87.09 at the close, marking its worst day since March 2020.
According to Stifel analysts, Micron expects further delays in the PC refresh cycle and has pockets of elevated customer inventory in smartphones. Despite this, data center revenue jumped 400%, driven by demand for artificial intelligence.
The company’s second-quarter guidance includes revenue of $7.9 billion and adjusted earnings per share of $1.43. Analysts had expected revenue of $8.98 billion and EPS of $1.91. Micron reported an earnings beat from the first quarter, with earnings per share coming in at $1.79.
CEO Sanjay Mehrotra attributed the company’s performance to slower growth in consumer device parts and inventory adjustments. However, he also highlighted the potential for AI-driven growth to create substantial value for stakeholders.
Source: https://www.cnbc.com/2024/12/19/micron-headed-for-worst-day-since-2020-after-disappointing-guidance.html