Micron stock soars as Q1 revenue forecast tops analyst estimates

Published On Sep 26, 2024, 8:32 AM

Micron Technology (MU) saw its stock increase by 17% after announcing a Q1 revenue forecast that exceeded analyst expectations. The company projects first quarter revenues of $8.5 billion to $8.9 billion, surpassing the analyst estimate of $8.3 billion, thanks to improved pricing and strong demand for memory chips used in AI data centers. CEO Sanjay Mehrotra expressed optimism about the AI market potential, predicting significant growth for high-bandwidth memory chips. Analysts remained bullish, reiterating their outperform ratings for Micron. The stock's rise reflects positive sentiment not just for Micron but also the semiconductor sector more broadly, especially following an encouraging earnings report from the company, which showed 93% revenue growth year-over-year. Furthermore, legislative support from the U.S. government could enhance Micron's position by expediting access to funding for their chip projects.