Micron Technology shared its quarterly report on Wednesday, with the company’s results being better than the analysts expected. However, the chipmaker’s stock still plunged in after-hours trading due to a weak fourth-quarter revenue forecast.
Micron reported $0.62 adjusted earnings per share (EPS) compared to $0.51 expected by analysts, while its $6.81 billion revenue also topped the estimates of $6.67 billion.
On the other hand, the company forecasts $1.08 in adjusted EPS and revenue of $7.6 billion in the fourth quarter, which is largely in line with the $1.05 adjusted EPS and $7.6 billion that analysts expect. Investors, on the other hand, believed that Micron would be more optimistic about its revenue considering the robust demand for artificial intelligence-related products that the company makes.
Micron Technology CEO Sanjay Mehrotra said in a statement that the company’s AI business is booming, but the PC and smartphones part of the business isn’t going as expected.
“Robust AI-driven demand for data center products is causing tightness on our leading-edge nodes,” Micron Technology CEO Sanjay Mehrotra said in a statement. “Consequently, we expect continued price increases throughout calendar 2024 despite only steady near-term demand in PCs and smartphones.”
Micron’s stock closed at $142.36 per share on Wednesday, being 72.89% up year-to-date. However, the after-hours slide of 6.86% brought the share down to $132.60.