Shares of Micron jumped 14% on earnings led by the AI ​​boom

Shares of Micron jumped more than 14% in extended trading Wednesday after the company announced results for the second quarter of fiscal 2024 which beat analysts to offer rosy guidance. The company, which makes memory and storage for computers, said it has benefited from the boom in artificial intelligence.

Here’s how the company fared:

• Earnings per share: 42 cents adjusted versus a 25 cent loss expected from LSEG, formerly Refinitiv.
• Income: $5.82 billion vs. $5.35 billion expected by LSEG.

Micron said revenue rose to $5.82 billion from $3.69 billion in the prior quarter. The company reported net income of $793 million, compared to a net loss of $2.3 billion in the same period last year.

For the fiscal third quarter, Micron expects to report revenue of $6.6 billion, above analysts’ expectations of $6.02 billion.

“We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity presented by AI,” Micron CEO Sanjay Mehrotra said in a statement.

Micron has long provided memory and flash memory for computers, data centers and phones. Big data centers are being used to power the influx of new AI software. While Nvidia has grabbed much of the limelight for its AI-powered GPUs, companies like Micron are benefiting from providing memory and storage for these systems.