People visit Micron’s booth at the 7th China International Import Expo held at the National Convention and Exhibition Center in Shanghai on November 5, 2024.
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micronThe company’s second-quarter results were a big boost, driven by a surge in demand for memory, but the company’s stock was not a boon.
Since last Wednesday’s report, the memory maker’s stock has fallen about 14%, following a 2.2% decline on Tuesday.
Micron has benefited from a surge in demand for artificial intelligence chips that require large amounts of memory.
micron, SK Hynix and samsung It accounts for almost the entire market for the kind of memory that AI companies prefer. Nvidia and advanced micro device Relies on high performance chips.
“Memory today is in very tight supply, and we can’t easily ramp up supply, and that’s clear from our performance,” Micron CEO Sanjay Mehrotra said Thursday on CNBC’s “Squawk on the Street.” “We see the value of memory reflected in our strong financial performance in the second quarter.”
Mr. Mehrotra added that the company is struggling to serve customers amid severe supply constraints, with major customers only getting “50% to two-thirds of their requirements.”
Micron is up more than 300% over the past year. Among the top 10 U.S. technology companies, it is the only one to be profitable year-to-date. oracle and microsoft Both fell more than 20%.
Micron reported second-quarter fiscal 2026 revenue of $23.86 billion, nearly triple the $8.05 billion reported in the same period last year. The company also issued strong guidance, predicting gross margins of approximately 80% for the next quarter.
Despite the immediate drop in the stock price, analysts reacted positively to the company’s earnings. bank of america, morgan stanley and JP Morgan All companies raised their price targets after the report.
“Concerns about increased capex and peaking gross margins in FY27 (81% > 75% for NVIDIA) likely triggered some profit-taking after the strong stock price print,” he wrote. City’s Autumn Atif Malik.
Micron’s 1-year stock price chart.
