Micron Technology Inc (NASDAQ:MU) shares gave back early gains to trade 2% lower mid-morning Wednesday, despite the memory chipmaker reporting stronger-than-expected quarterly results and upbeat guidance.
The Idaho-based company posted fiscal fourth quarter revenue of $11.3 billion, ahead of analyst forecasts of $11.15 billion, while adjusted earnings of $3.03 per share topped estimates of $2.84. The results exceeded Micron’s own updated outlook from August, powered by booming demand for artificial intelligence data centers, which now account for 40% of total revenue.
Looking ahead, Micron guided for first-quarter revenue of $12.2 billion to $12.8 billion, above expectations of $11.9 billion. Adjusted earnings per share are projected between $3.60 and $3.90, comfortably surpassing the $3.05 consensus.
Micron’s DRAM business, central to AI workloads, was the standout, with sales up nearly 70% year-on-year to $8.98 billion. NAND revenue, used for longer-term storage, slipped 5% to $2.25 billion.
Shares have surged nearly 100% this year on AI enthusiasm, though some analysts warn valuations across the sector may be overheating.
Indeed, analysts and traders suggest investors may have used the stellar results to book some profit on Micron holdings, a process called 'top slicing'.
Whatever the reason, the stock was down $3.31 at $163.10.