Micron stock pops 14% on earnings beat driven by AI boom

Shares of Micron popped more than 14% in extended trading on Wednesday after the company announced second-quarter fiscal 2024 results that beat analysts and offered rosy guidance. The company, which makes memory and storage for computers, said it has benefitted from the artificial intelligence boom.

Here’s how the company did:

• Earnings per share: 42 cents adjusted vs. 25 cent loss expected by LSEG, formerly known as Refinitiv.
• Revenue: $5.82 billion vs. 5.35 billion expected by LSEG.

Micron said revenue rose to $5.82 billion from $3.69 billion in the year ago quarter. The company reported a net income of $793 million, up from a net loss of $2.3 billion in the same period last year.

For its fiscal third quarter, Micron expects to report revenue of $6.6 billion, above the $6.02 billion expected by analysts.

“We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI,” Micron CEO Sanjay Mehrotra said in a release.

Micron has long provided memory and flash storage for computers, data centers and phones. Large data centers are used to power the influx of new AI software. While Nvidia has grabbed much of the spotlight for its graphics processing units that run AI, companies like Micron benefit by providing the memory and storage for those systems.