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Hardware & electrical equipment

Micron stock sputters on soft fiscal Q1 guidance despite demand for AI chips

Micron Technology, Inc. (NASDAQ:MU) shares tumbled 4.5% in extended trading Wednesday after posting a fiscal fourth-quarter revenue that came in short of expectations.

The chipmaker posted an adjusted loss of $1.07 per share on revenue of $4.01 billion, compared to earnings of $1.45 per share on revenue of $6.44 billion in the year-ago quarter.

Analysts had projected a loss of $1.11 per share on revenue of $3.69 billion.

Looking ahead, investors were also unimpressed with Micron’s earnings guidance. The company projected a fiscal first-quarter adjusted loss of $1.07 per share, wider than Street expectations of $0.95 per share.

The company guided for revenue of $4.2 billion to $4.6 billion, compared to analyst expectations of $4.2 billion.

That revenue estimate is driven in part by demand for Micron’s memory chips in the booming artificial intelligence (AI) sector. Micron plans to begin production of high-bandwidth memory components, which are used in many AI chips, in 2024.

“Our 2023 performance positions us well as a market recovery takes shape in 2024, driven by increasing demand and disciplined supply,” CEO Sanjay Mehrotra said in a statement. “We look forward to record industry [total addressable market] revenue in 2025 as AI proliferates from the data center to the edge.”

Shares of Micron dropped 4.5% to $65.15 after the bell.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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