Micron Technology, the world’s largest memory-chip maker, reported stronger-than-expected earnings in its first fiscal quarter but fell short on guidance for the current period. Analysts expected earnings of $1.76 a share, but Micron delivered $1.79 a share instead.
The company’s data center revenue surged more than 400% year-over-year, with sales now over half of total revenue. CEO Sanjay Mehrotra said Micron is well-positioned to benefit from the growth of artificial intelligence (AI) in the market.
However, analysts had predicted $1.91 a share for the next quarter, which Micron missed. As a result, its stock plummeted 13% in after-hours trading, closing at $103.90.
Micron’s strong demand for memory chips for AI servers drove the company’s earnings growth. The data center industry is expected to continue growing as companies invest more in cloud computing and artificial intelligence.
Source: https://www.investors.com/news/technology/mu-stock-micron-fiscal-q1-2025-earnings