Micron Technology, a top memory-chip maker, had a rough night after announcing their latest earnings. While they hit close to what experts predicted for the first quarter, their forecast for the next quarter didn't impress investors. This caused Micron's stock to drop dramatically in after-hours trading, losing more than 13% of its value.
The company, based in Boise, Idaho, did have some good news. They made $1. 79 per share and earned $8. 71 billion in sales for the quarter ending November 28. Analysts had predicted $1. 76 per share and $8. 71 billion in sales. This is a big improvement from the same quarter last year when they lost money.
However, their projections for the next quarter were below what Wall Street expected. They estimated earnings of $1. 43 per share on sales of $7. 9 billion, while analysts were hoping for $1. 91 per share on sales of $8. 94 billion.
The company said that their first-quarter results were strong because of high demand for memory chips used in AI servers. Their data center sales jumped over 40% compared to the previous quarter and went up by more than 400% from the same time last year.
Micron's CEO, Sanjay Mehrotra, said they had a record quarter and that data center revenue made up more than half of their total sales for the first time. He also warned that the market for consumer products might weaken in the near future but expected it to improve by the second half of their fiscal year.
Micron produces two main types of computer memory: DRAM and Nand. DRAM chips are used as the main memory in computers, servers, and other devices, working closely with the central processing unit. Nand flash memory is used for long-term data storage.
In the regular trading session, Micron stock fell by 4. 3%, closing at $103. 90. During after-hours trading, it took an even bigger hit, plunging to $89. 53.
