$Micron Tech(MU.US) (+14% AH) blew away 3Q estimates and guided significantly higher for 4Q revs and gross margin vs WS ests. Other memory chip manufacturers’ stocks rose in sympathy.
3Q Results:- Adj EPS of $25.11. vs. $20.49 est.- Rev of $41.5 billion vs $35.7 billion est - Gross margin 84.9% vs 81.9% est4Q Guidance:- Adj EPS of $30-$32 vs $25.31 est- Rev of $49-$51B vs $43.2B est - Gross margin of 86% vs 83.6%Micron and its rivals have struggled to satisfy memory-chip demand, creating shortages in areas like computers, phones and cars. Though the company is expanding its manufacturing capacity, prices are expected to remain high for the foreseeable future. Micron and its Korean competitor in the memory space — Samsung Electronics Co. and SK Hynix Inc. — have become major beneficiaries of the AI boom. A spending spree by data center operators has stoked the appetite for both conventional memory and a newer variety called high-bandwidth memory, or HBM, that works with AI systems.The copyright of this article belongs to the original author/organization.
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