MU - Micron Knocks It Out Of The Park In Q3 (Rating Upgrade)
2024-06-27 06:15:53 ET
Summary
- Micron beat earnings and revenue expectations for its FQ3, driven by strong demand for AI memory products.
- Despite strong performance, shares dropped 8% in after-hours trading due to what some saw as a disappointing FQ4 revenue guidance.
- Micron's growth is driven by increasing demand for memory products, particularly in the HBM business. The outlook is very positive.
- Despite surging HBM sales and a massive upsurge in EPS, shares of Micron are still cheap and have a very attractive risk profile.
Despite Micron ( MU ) reporting solid third fiscal quarter results on Wednesday, and beating earnings by a good margin, shares skidded 8% in after-hours trading. The memory maker benefits from accelerating demand for its AI memory products which are used to power artificial intelligence applications in Data Centers especially. Micron’s guidance for FQ4’24 revenues disappointed, although I feel that the company’s accomplishments, especially in terms of NAND/DRAM pricing strength and gross margins should have outweighed any concerns about the top line forecast for the next quarter. I believe Micron's strong revenue momentum and positive gross margin trend justify a rating up-grade in my opinion!...
Micron Knocks It Out Of The Park In Q3 (Rating Upgrade)