Micron Expertise, Inc. (NASDAQ: MU) is uniquely positioned to capitalize on the AI wave sweeping the tech business, leveraging its high-bandwidth-memory merchandise designed for large information processing duties. The corporate delivered record-high information heart revenues in the latest quarter, due to its broad product line tailor-made to satisfy the rising demand on this section.
Micron’s inventory trended upward all through this week, partially recovering from the latest downturn. Presently hovering close to the $100 mark, the inventory worth has grown about 18% to date this yr. Apparently, over the previous seven quarters, the corporate has constantly reported revenues and bottom-line numbers that exceeded expectations. The comparatively low worth supplies a novel alternative to speculate on this high-growth firm with robust prospects.
Estimates
After coming into FY25 on an upbeat be aware, the Idaho-headquartered reminiscence chipmaker issued optimistic steerage for the second quarter, projecting revenues of $7.90 billion, which represents a 36% year-over-year enhance. The administration expects Q2 adjusted earnings per share to extend sharply to $1.43 from $0.40 final yr. The steerage is sort of consistent with analysts’ consensus income and earnings estimates of $7.92 billion and $1.43 per share, respectively, for the February quarter. The earnings report is slated for launch on Thursday, March 20, at 4:00 pm ET.
Revenues Surge
Micron reported revenues of $8.71 billion for the primary quarter of 2025, sharply larger than the $4.73 billion income it generated within the corresponding interval of 2024. A 46% development within the Compute & Networking section, which manages the manufacturing of DRAM and NAND reminiscence chips and accounts for greater than 50% of the entire enterprise, offset weak spot within the different divisions by a large margin.
From Micron’s Q1 2025 earnings name:
“We anticipate PC market models to develop within the mid-single-digit share vary in calendar 2025, with development weighted towards the second half of the calendar yr. Turning to cell. Smartphone unit volumes in calendar 2024 stay on observe to develop within the mid-single-digit share vary, and we anticipate low single-digit share development in 2025, each in keeping with our prior expectations. AI adoption continues to be a powerful driver for cell DRAM content material development, the place we see the expertise utilized in functions reminiscent of native search and contextually conscious consumer interfaces rising over time.”
Returns to Revenue
On an adjusted foundation, Q1 earnings have been $1.79 per share, in comparison with a lack of $0.95 per share within the year-ago interval. Unadjusted internet revenue got here in at $1.87 billion or $1.67 per share in Q1, vs. a lack of $1.23 billion or $1.12 per share within the prior-year quarter.
Micron’s stakeholders have been dissatisfied after the corporate warned of a stoop in gross margins this yr because it sees a serious chunk of demand coming from lower-margin companies, although robust volumes might catalyze income development. One other concern is the persevering with softness within the demand for client merchandise like PCs and smartphones.
On Friday, Micron’s inventory opened larger and gained as a lot as 6% within the early hours of the session. The worth has remained under the 12-month common of $107.82 since final month.
