Shares of Micron Technology (NASDAQ: MU) are soaring today, up 7.5% as of ET. The jump comes as the S&P 500 and Nasdaq Composite gained 0.8% and 1.1%, respectively.
The semiconductor company, which produces specialized memory chips for artificial intelligence(AI) servers, reported blowout earnings after the bell on Wednesday. The report was so strong that it has helped lift AI stocks across the board.
NASDAQ: MU
Key Data Points
Micron's big time beat
For the quarter ending in November, Micron reported earnings per share (EPS) of $4.78 on $13.6 billion in revenue, handily beating expectations on both the top and bottom lines; Wall Street had anticipated earnings of $3.96 per share on $12.9 billion in sales.
Micron's guidance blew past analyst estimates as well, expecting to bring in $18.7 billion in revenue next quarter, well above the consensus target of $14.3 billion.
Image source: Getty Images.
Wall Street was impressed. Joseph Moore of Morgan Stanley said that "Outside of Nvidia," it was "likely the best revenue/$net income upside in the history of the U.S. semis industry," referring to the AI behemoth's Spring 2023 earnings print that was the inflection point for the modern AI boom in public markets.
Micron is a buy
Micron is a solid pick within the AI market. Memory -- the company's bread and butter -- is in short supply, and even after this week's gains, its stock still trades at a discount.
