Chipmaker Micron beat Wall Street’s expectations for its third-quarter earnings, reporting revenue of $6.81 billion — an 80% jump from the previous year.
The company’s third-quarter revenue is a 17% increase from the previous quarter’s $5.82 billion. Wall Street had expected the chipmaker to report third-quarter revenue of $6.7 billion, according to FactSet.
“Robust AI demand and strong execution enabled Micron to drive 17% sequential revenue growth, exceeding our guidance range in fiscal Q3,” Sanjay Mehrotra, president and chief executive of Micron, said in a statement. Mehrotra added that the chipmaker is “gaining share in high-margin products,” including High Bandwidth Memory (HBM), while its data center’s solid state drives, or SSDs, hit record revenue, “demonstrating the strength of our AI product portfolio across DRAM and NAND.”
Mehrotra said Micron is “excited about the expanding AI-driven opportunities ahead,” and that the company is “well positioned to deliver a substantial revenue record in fiscal 2025.”
Micron expects fourth-quarter revenue to be $7.6 billion — and that didn’t impress investors.
The chipmaker’s stock was up 0.88% at the market close on Wednesday, but was down more than 7% in after-hours trading as its fourth-quarter revenue guidance came right in line with analysts’ estimates, but didn’t exceed them. The stock had been up around 0.5% in mid-day trading ahead of earnings. Its shares have climbed 66.8% so far this year, and reached a record-high closing price of $153.45 on June 18.
Micron is one of the largest semiconductor companies in the world, and the only U.S.-based manufacturer of computer memory chips. In April, Micron received $6.1 billion in Chips and Science Act funds to build chip fabrication plants (fabs) in central New York and Idaho.