Micron Technology Inc. {{ m-tag option="price" ticker="MU" currency="USD" }} experienced a near 8% drop in aftermarket trade following the release of its outlook for the current quarter. Despite this, Micron's quarterly earnings exceeded market expectations due to strong demand driven by artificial intelligence (AI). However, Micron projected its current quarter revenue to be $7.6 billion, which aligns with market estimates.

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Market Reactions and Comparisons

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Micron's performance influenced other chipmaking stocks, causing notable declines.
NVIDIA Corporation dropped nearly 2%, while chip designers Arm Holdings and Broadcom Inc each lost 1%.

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Quarterly Performance and AI Impact

• Adjusted earnings of $1.08 per share
• Sales of $7.6 billion

Analysts had projected:

• Earnings of $1.02 per share
• Sales of $7.59 billion

The same quarter last year:

• Losing an adjusted $1.07 per share
• Sales of $4.01 billion

CEO Sanjay Mehrotra highlighted that:

• Robust AI demand and strong execution led to a 17% sequential revenue growth
• Surpassing their guidance range for fiscal Q3

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Market Position

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Mehrotra expressed optimism about the expanding AI-driven opportunities and believes Micron is well-positioned to achieve substantial revenue growth in fiscal 2025. Micron's stock surged to record heights this year, reflecting a cyclical upturn in memory chip sales.

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Financial Performance

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Analysts expect Micron's revenue to reach $6.7 billion for the third quarter of fiscal 2024, marking an increase from the previous quarter and the same period last year. Net income is projected at $399.39 million, a significant improvement from a loss of $1.9 billion in Q3 2023. Diluted earnings per share (EPS) are estimated at 30 cents, up from a loss of $1.73 per share in the previous year.

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