After the US stock market closed on Wednesday, June 26th local time, memory chip manufacturing leader Micron Technology released its third quarter results for the 2024 fiscal year as of May.
Due to the continuous development of the AI field and the growing demand for higher performance memory solutions, the demand for AI has driven continuous growth in data center revenue. Micron Technology's total revenue in the third quarter was $6.81 billion, an increase of 81.6% year-on-year from $3.75 billion in the same period last year, higher than analysts' expectations of $6.67 billion and also higher than the revenue of $5.82 billion in the previous quarter.
The net profit for the quarter was 332 million US dollars, or 0.30 US dollars per share, far exceeding the net loss of 1.9 billion US dollars or 1.73 US dollars per share in the same period last year. The adjusted quarterly EPS is $0.62 per share, higher than the market expectation of $0.51. The quarterly operating profit of 941 million US dollars was also higher than the expected 869.1 million US dollars, with an adjusted operating profit margin of 28.1%, better than the expected 27.2%.
Micron Technology expects an adjusted revenue range of $7.4 billion to $7.8 billion for the next fiscal quarter ending in August (i.e. $7.6 billion plus or minus $200 million), with the midpoint of the range basically in line with analyst expectations of $7.58 billion; Expected adjusted EPS is $1.08 per share plus or minus $0.08, with a market expectation of $1.02; The expected adjusted operating profit margin is 33.5% to 35.5%, with a market expectation of 34.5%.
Although all indicators in the financial report were better than expected, the guidance for the next fiscal quarter only met market expectations and was not eye-catching enough, causing Micron Technology to fall more than 9% after the market.
As of the close, Micron Technology reported $142.36 with a market value of $157.64 billion. Compared to the historical closing high set last Tuesday, Micron Technology has fallen by 7%, and has risen nearly 67% this year.
Wall Street has high expectations for this financial report, believing that Micron Technology will benefit from multiple factors such as the continuous growth in demand for PCs, personal computers, and smartphones, the reduction of excess memory chip inventory in automotive and industrial customers, and the surge in demand related to artificial intelligence.
Citigroup analysts pointed out that considering the upward trend of DRAM prices and the continuous expansion of Micron's market share and product range in the AI memory field, it is expected that the company's revenue in the fourth quarter will further increase to $8 billion. Citigroup has therefore listed Micron Technology as its "preferred stock" and raised its target price from $150 to $175, representing a 24% increase in potential.
The market will also focus on the partnership between Micron Technology and "AI darling" NVIDIA, where Micron Technology produces high bandwidth memory chips for NVIDIA AI GPUs. JPMorgan Chase once stated that Micron's HBM has made a strong entry into NVIDIA's GPU market and will be able to benefit from NVIDIA's AI revenue in the future. "The demand driven by AI is the fastest growing new driving force in the history of the memory chip market.".
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