Memory chip maker Micron Technology reported fiscal fourth-quarter profit and revenue that exceeded expectations, but its outlook for the current quarter came in mixed. The company’s earnings for the period ended August 31 fell 26% from the previous year, while revenue tumbled 40%. However, analysts were anticipating even lower results, so Micron’s performance surpassed their estimates. For the current quarter ending in November, the company predicted an adjusted loss of $1.07 per share, the same as the previous quarter, on revenue of $4.4 billion. Wall Street analysts expected a smaller loss of 88 cents per share on higher sales of $4.24 billion.
Despite the positive earnings results, Micron’s stock fell nearly 4% in premarket trading. Prior to this, the stock had been rising amid the buzz around artificial intelligence stocks. Micron’s CEO, Sanjay Mehrotra, expressed confidence in the company’s future performance, especially as demand increases and supply remains disciplined. The firm also predicts record industry revenue in 2025 as artificial intelligence expands its presence from data centers to the edge. However, analysts anticipate challenges ahead, including the expected firming of memory chip pricing in fiscal 2024 and the Chinese government’s plan to ban Micron memory chips from its computer network infrastructure.
Overall, while Micron’s fiscal fourth-quarter performance exceeded expectations, its outlook for the current quarter and future challenges in the memory chip industry have caused some concern among investors.
