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Micron Gains on Strong Forecast

The company has been contending with sluggish phone and PC markets

CEO expects 2024 to be a rebound year for battered industry

Micron rises on premarket trading

Bloomberg chart

Shares of Micron Technology Inc. gained about 6% in premarket trading Thursday after the largest US maker of memory semiconductors gave a strong revenue forecast, indicating that data center demand is compensating for a slowly recovering market for personal computers and smartphones.

Fiscal second-quarter revenue will be $5.1 billion to $5.5 billion, the company said in a statement Wednesday.

That compares with an average analyst estimate of $4.99 billion. Excluding certain items, Micron will have a loss of 21 cents to 35 cents — narrower than the 62 cents projected by analysts.

  • Shares rose to $83.29 early in New York after closing at $78.69.

They had been up 57% this year — in line with broader gains for chip equities — driven by investor optimism that an inventory glut is easing.

The outlook signals that Micron is through the worst of an industrywide slump and moving back toward profitability. The boom in artificial intelligence spending is helping. Chief Executive Officer Sanjay Mehrotra has pointed to strong demand for the expensive memory used in data centers to help develop AI software.


Source: Bloomberg/Morgan Stanley
Image: Micron