(AOF) – Micron (+5.92% to 83.35 dollars) is catapulted among the biggest risers in the S&P 500 index, supported by a better-than-expected quarterly performance and a favorable outlook. JPMorgan blames higher-than-expected forecasts on rising demand and the normalization of excess customer inventory – all leading to larger-than-expected price increases for DRAM and NAND in multiple markets, including smartphones, PCs, IoT, automotive and industry.
In the first quarter, ended at the end of November, of its 2024 fiscal year, the computer memory manufacturer suffered a net loss of $1.23 billion, or $1.12 per share, compared to a loss of $195 million, or 18 cents per share last year. The adjusted loss per share came to 95 cents while the market expected a loss of 1 dollar.
Revenue rose 15.7% to $4.73 billion and Wall Street expected $4.54 billion.
“Micron’s strong execution and pricing delivered better-than-expected financial results for the first quarter,” said Sanjay Mehrotra, CEO of Micron Technology. “We expect the fundamentals of our business to improve throughout 2024, with a record total industry addressable market forecast for calendar year 2025” driven by demand for related applications to artificial intelligence.
Favorable outlook
In the second quarter, the computer memory maker is targeting revenue of $5.3 billion, give or take $200 million, compared with a consensus of $4.99 billion. Micron also anticipates an adjusted loss per share of 28 cents, plus or minus 7 cents. Wall Street expects a loss of 62 cents per share.
“Management sees data center customer inventories improving and expects their inventories to approach normalized levels by the first half of 2024,” JPMorgan notes.
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