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Micron Technology (MU) shares are gaining in extended-hours trading after the tech name's fiscal second quarter results topped revenue ($8.05 billion vs. estimates of $7.91 billion) and adjusted earnings ($1.56 per share vs. estimates of $1.43 per share) expectations.
Julie Hyman and Josh Schafer dive into the semiconductor and memory chip developer's latest earnings results and its third quarter revenue guidance.
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Turning now to earnings. We got Micron, the company's second quarter numbers hitting the wire and the third quarter forecast is above estimates. That's what's responsible for the pop in the stock here. Earnings per share coming in for the second quarter buck 56 a dollar 43 is what analysts had been anticipating. Revenue at 8.05 billion also coming in better than estimated. And the company's third quarter revenue forecast is 8.6 to 9 billion. Analysts had been looking for just under 8.6 billion dollars. Uh the CEO, um, in the statement really talking about demand here, Sanjay Mehrotra, uh, talking about extending technology leadership, they're talking about new products here, and he said we expect record quarterly revenue in fiscal three Q3. That's the forecast I just talked about with DRAM and NAND demand growth in both data center and consumer-oriented markets. We're on track for record revenue and significantly improved profitability in fiscal 2025.
Yeah, not surprised to see the stock move higher on this news, right? Seems like a good print across the board. And one thing that sticks out with Micron too, we've been talking so much about these different tech companies over the last months. So many companies have been struggling, their stocks have been struggling, right? This stock was basically flat over the drawdown over the last month. So it felt like perhaps investors were feeling a little bit better about the individual picture for Micron and getting validated a bit here, but I also think maybe that's why you're seeing, you know, a five or six percent jump on a very good print rather than maybe something significantly larger because I think as we get into earnings season and a lot of these companies have come down so much, it makes sense to see large jumps. But Micron wasn't really in that position necessarily coming into this, so good print overall.
Yeah, I mean, to put things in perspective, Micron is a memory chip maker. There's only a handful of memory chip makers, but it is, I mean chips in general are a commodity business. Memory chips in particular are commoditized business. Micron's been able to break above and some of the other memory chip makers with the introduction of more high bandwidth memory chips, more advanced memory chips that cater and fit into the AI ecosystem. So that's how they've kind of become an AI trade as well. But they still have a big commodity business. So that's just something to think about when you're looking at these things.
Right. Yeah, it's they have a larger probably traditional business than they do sort of the AI part of that business.
Yeah, and that's true of a lot of tech companies that are trading.
I thought everything was an AI trade, Julie.
It is to different degrees. Okay.