Micron Technology Inc (NASDAQ:MU) has reported better-than-expected financial results for the fiscal third quarter as it benefited from surging demand for its memory chips for AI applications.
But shares of Micron fell more than 7% to about $131 post-earnings as its revenue guidance for fiscal 4Q fell short of some analysts' forecasts, despite being above the consensus Street expectation.
It expects revenue of $7.6 billion at the midpoint, compared to the consensus of $7.45 billion, but some analysts had pegged revenue as high as $8 billion.
It expects adjusted earnings per share (EPS) of $1.08, above estimates of $0.90.
For Q3, which ended May 30, revenue was $6.81 billion, up from $3.75 billion in the year-ago quarter and ahead of estimates of $6.7 billion.
Adjusted EPS of $0.62 topped expectations of $0.50.
“Robust AI demand and strong execution enabled Micron to drive 17% sequential revenue growth, exceeding our guidance range in fiscal Q3,” Micron Sanjay Mehrotra said in a statement.
“We are gaining share in high-margin products like High Bandwidth Memory (HBM), and our data center SSD revenue hit a record high, demonstrating the strength of our AI product portfolio across DRAM and NAND.”