On Wednesday, after the U.S. markets closed, semiconductor giant Micron Technology announced its financial results for the fourth quarter of fiscal year 2024 and issued guidance for the first quarter of fiscal year 2025. The report indicated that a surge in demand for memory chips, driven by advancements in artificial intelligence (AI), resulted in substantial revenue growth during the fourth quarter, significantly surpassing market expectations. Consequently, this favorable news triggered a sharp increase in Micron’s stock price in after-hours trading, with shares rising by more than 14% at one point.

Financial Performance:

Micron's revenue for the fourth quarter of fiscal year 2024 reached $7.75 billion, representing a 93.3% year-over-year increase, and surpassing analysts' projections of $7.65 billion.

Moreover, adjusted operating income was $1.75 billion, marking a turnaround from a loss of $1.208 billion in the same period last year, and exceeding the forecasted $1.58 billion.

Similarly, earnings per share (EPS) on a non-GAAP basis were $1.18, reversing a loss of $1.07 per share in the prior year’s quarter, and again outperforming analysts' expectations of $1.11 per share.

Outlook for the Upcoming Quarter:

Looking ahead, Micron provided an optimistic outlook for the next quarter, forecasting revenue in the range of $8.5 billion to $8.9 billion, which is above the analysts' consensus estimate of $8.21 billion. Additionally, the midpoint of its adjusted EPS guidance is projected to be $1.74, surpassing the analysts' estimate of $1.54. This positive projection reflects Micron's ability to capitalize on the ongoing surge in AI-driven investments.

Micron’s CEO, Sanjay Mehrotra, stated: "Micron’s revenue for the fourth quarter grew 93% year-over-year, driven by strong AI demand, which fueled robust growth in our data center DRAM products and industry-leading HBM chips." He further highlighted that the company achieved a record high in NAND product revenue this quarter, indicating a potential recovery in the data center market and continued growth driven by AI demand.

In response to these results, Micron’s stock surged by over 14% in after-hours trading, reflecting the market’s positive reaction to its financial report and boosting confidence in the broader global semiconductor industry. This strong performance is particularly notable amidst the ongoing uncertainties facing the global chip market.

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