Micron Technology Inc. (MU) is trending up in extended hours on Wednesday after reporting market-beating earnings for its fiscal first quarter.Micron issues upbeat guidanceShareholders are happy because the management’s guidance for the current quarter topped Street estimates as well.Micron now forecasts its revenue to come in at $5.3 billion in the second quarter. Analysts, in comparison, were at $4.97 billion. According to Delano Saporu of New Street Advisors:
I think the big driver in 2024 for Micron is going to be AI. There’s going to be a lot more demand and I think that’s why I’d be a buyer here.
In the earnings release, Sanjay Mehrotra – the Chief Executive of Micron Technology also said that the Boise-headquartered firm that makes memory chips is well-positioned to capitalize on artificial intelligence related opportunities.
“The recovery is happening quicker than expected…at the end of the day here I think you continue to hold, or continue to buy the stock here” CFRA’s Angelo Zino on Micron$MU #earnings @JonFortt pic.twitter.com/5PImFIRQ2o
— CNBCOvertime (@CNBCOvertime) December 20, 2023
Micron Q1 earnings snapshot
Micron stock is now up about 60% versus the start of this year. Still, Saporu told CNBC ahead of the earnings report:
I think some of that [tailwinds] is priced in but some of that is not priced in.
Note that CEO Mehrotra expects Micron Technology to further improve its fundamentals in the coming year with the total addressable market hitting a record in 2025.More By This Author:Apple Will Be Worth $4.0 Trillion By The End Of 2024: Wedbush Analyst Marathon, Riot Stocks Surge As Bitcoin Climbs To $44k Canopy Growth: What Next For The Vulnerable CGC Stock?
