Micron Technology posted second-quarter results that exceeded market expectations on Thursday (Friday AEDT), driven by soaring demand for high-bandwidth memory (HBM) chips used in artificial intelligence applications.
Earnings per share (EPS) came in at $1.56 versus $1.43 expected and total revenue for the quarter ended 27 February reached US$8.05 billion, surpassing analyst expectations of $7.89 billion.
While this marked a decline from the prior quarter’s $8.71 billion, it represented a significant increase from $5.82 billion in the same period last year.
The company’s HBM revenue also surpassed US$1 billion for the first time in fiscal Q2.
“Micron delivered fiscal Q2 EPS above guidance and data center revenue tripled from a year ago,” said Sanjay Mehrotra, Chairman, President and CEO of Micron Technology.
“We are extending our technology leadership with the launch of our 1-gamma DRAM node. We expect record quarterly revenue in fiscal Q3, with DRAM and NAND demand growth in both data center and consumer-oriented markets, and we are on track for record revenue and significantly improved profitability in fiscal 2025.”
The company’s forecast for Q3 also exceeded expectations, with projected adjusted earnings of $1.57 per share on revenue of $8.80 billion, beating Wall Street’s estimates of $1.47 per share on $8.50 billion, according to LSEG data.
The growing AI sector has intensified demand for Micron’s HBM chips, a DRAM standard designed for high-performance computing, which optimises space and reduces power consumption.
At the time of writing, Micron Technology (NASDAQ: MU) stock was trading at US$106.48, adding 3.5% from Thursday's close of $103.00 The stock reached a day low of $101.35 and a day high of $104.69. Micron Technology's market cap stands at US$114.76 billion.
