Topline
Micron shares rocketed Wednesday after the chipmaker reported the most profitable quarter in its history, further cementing its role as a beneficiary of the artificial intelligence infrastructure boom.
Micron shares rocketed Wednesday.
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Key Facts
Micron shares briefly jumped more than 15% in extended trading Wednesday after it closed the day down a fraction of a percent.
Micron reported third-quarter revenue of $41.4 billion, up from $9.3 billion in the same period a year ago, according to a filing.
Adjusted diluted earnings per share came in at $25.11, a massive jump from the $1.91 posted in the year-ago quarter, while net income reached $28.24 billion.
Micron set its fourth quarter revenue guidance to $50 billion alongside adjusted diluted earnings per share of $31.00.
Bulls behind Micron’s stock will likely point to the earnings report as proof the company’s earnings stream will prove more durable than bears fear, according to a note from market insights firm Vital Knowledge, which noted supply and demand conditions for Micron will remain tight for at least the next one and a half years.
Contra
Bears are likely to remain concerned about how Micron can keep up its supply for extreme AI demand, Vital Knowledge’s note added. The firm also identified management’s expectation for higher capital expenditure ($10 billion in fiscal quarter four) as a potential red flag.
This is a developing story. Check back for updates.