On Wednesday, Micron Technology announced its vital third-quarter financial data due to the robust demand for its memory chips.
Its shares closed 0.93% higher at $142.44 apiece but ended -8.03% lower at $131.00 per share after hours.
Micron’s earnings per share rose to $0.62, surpassing analysts’ expectations of $0.48 and the previous quarter’s $0.42 reading.
Moreover, the company’s revenue increased to $6.81 billion, beating the anticipated $6.66 billion and the last $5.82 billion data.
Meanwhile, it reported $332.00 million in net income, compared to a $1.90 billion net loss in the year-ago quarter.
Sanjay Mehrotra, the chip provider’s CEO, said the company’s AI-oriented products are likely to rise in price as its data center business improved 50.00% quarter over quarter.
The firm’s current-quarter forecast disappointed investors who are hopeful about its artificial intelligence (AI) performance.
According to Running Point Capital’s CIO, its guidance has been good for the past two or three months. However, it does not have enough strength to reach current expectations amid its 67.00% year-to-date rally in its share price.
Micron is one of the providers of high-bandwidth memory chips for the most advanced AI systems, earning on surging demand for semiconductors.
Additionally, the tech company’s results tend to set the profit standard in the chip sector. They are known to serve as an indicator of demand for different chips and end markets.
Seoul Shares Declined After Micron Earnings Report
On Thursday, Seoul shares dropped due to investors’ negative feedback on Micron Technology’s earnings report.
Wall Street closed higher, boosted by megacap tech shares. However, the company declined after its financial data did not meet investors’ expectations as the AI space is rallying.
As a result, Japan’s Nikkei 225 fell by 1.20%, while South Korea’s KOSPI experienced a 0.50% loss. Also, Kong Kong’s Hang Seng index slid by 1.70% due to a tech slump and China jitters.
Its weak forecast raised worries about AI-driven spikes in demand and led investors to invest their recent profits in tech stocks.
