The fiscal fourth-quarter results of Micron Technology, Inc. (NASDAQ:MU) significantly exceeded expectations, with revenue jumping 93% to $7.75 billion for the period ending August 29. Excluding certain items, the company reported a profit of $1.18 per share, surpassing analysts’ estimates of $1.12 per share and revenue projections of $7.66 billion.
Micron Technology, Inc. (NASDAQ:MU) holds a competitive edge as the first chipmaker to consistently deliver advanced memory in large quantities. Executive VP of Operations, Manish Bhatia, noted that as companies rush to enhance their AI software and hardware, thereby requiring more memory, Micron is well-positioned to benefit.
Micron is also recovering from a decline in demand for personal computers and smartphones, two key markets for memory. The company stated that device shipments are on the rise again, and these devices will increasingly need memory chips to support AI features, providing an additional advantage.
Micron Thrives: AI Demand Drives Record Revenue Projections and Strong Market Position
The company specializes in dynamic random access memory (DRAM), which temporarily stores information and works alongside processors from companies like NVIDIA Corporation (NASDAQ:NVDA) and Intel Corporation (NASDAQ:INTC). It also produces NAND flash memory, used in various devices from data center computers to smartphones.
Micron’s CEO, Sanjay Mehrotra said that robust AI demand drove a strong increase in sales of their data center DRAM products. He stated that the company is entering fiscal 2025 with the best competitive positioning in Micron’s history
Robust AI demand drove a strong ramp of our data center DRAM products. We are entering fiscal 2025 with the best competitive positioning in Micron’s history.”
Micron CEO, Sanjay Mehrotra
As one of the few companies to survive the memory industry’s harsh boom-and-bust cycles, Micron is emerging from the latest downturn. The company competes with major players like Samsung Electronics and SK Hynix in the memory market.
Looking ahead, the company expects record revenue for the current quarter, projecting between $8.5 billion and $8.9 billion, which surpasses analysts’ expectations.
Micron Technology, Inc. (NASDAQ:MU) also anticipates earnings per share between $1.46 and $1.62, exceeding estimates as well.
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