Micron Technology delivered a very strong earnings report this week, reinforcing its key role within the artificial intelligence sector. Even with record-breaking results and analysts’ raising price targets, the stock pulled back on Thursday however, highlighting growing investor concerns about how long the current cycle can last, as well as the anticipated spending increase by Micron.
Micron’s latest earnings report show that revenue almost tripled year over year, while profitability surged. The Earnings per share came in at $12.20 vs $9.31 expected, and the revenue exceeded expectations as well, coming in at $23.86 billion vs the $20.07 billion expected. Moving forward, Micron forecasts the revenue growth to continue, expecting around $33.5 billion, up from $9.3 billion a year ago.
CEO Sanjay Mehrotra mentioned that the growth has been driven by the increase in memory demand driven by AI. As major tech companies race to build out AI infrastructure, high-performance chips such as DRAM and NAND, have become critical components. Micron’s cloud memory rose over 160% to $7.75 billion while the mobile and client business revenue also came in at an impressive $7.71 billion. During …