Micron Technology, Inc. proved the doubters and analysts wrong with a Babe Ruth-style homerun earnings report that saw revenues nearly double YoY driven by the artificial intelligence (AI) boom. The irony is that at least three analysts downgraded, trimmed estimates or lowered price targets for Micron ahead of its fiscal fourth-quarter earnings report, sending shares as low as $84.12 on Sept. 12, 2024. MarketBeat analysts thought otherwise, citing the 4 Reasons to Buy the 44% Price Drop and looking to Capitalize on Micron's 24% Drop.
Micron's solid AI-driven demand-powered earnings report helped lift the computer and technology sector, driving shares of memory device makers like Western Digital Inc. (NASDAQ: WDC) and Seagate Technology Holdings plc (NASDAQ: STX) higher.
Micron Finally Reaps AI Boom Benefits With Strong Q4 Results
The market had been waiting for Micron to show evidence of benefitting from the AI boom, such as NVIDIA Co. or Oracle Co. (NYSE: ORCL), as illustrated in their earnings blowouts. Yet, prior earnings and guidance were tepid and in line. This prompted many downgrades citing concerns that AI alone couldn't help slumping spot DRAM prices and inventory glut hurting its non-AI business like PCs and smartphones.
Micron's fiscal fourth-quarter of 2024 earnings report put all doubts to rest. The company reported EPS of $1.18, beating consensus estimates by 7 cents. Revenues surged 93.3% YoY to $7.75 billion, crushing consensus estimates by over $100 million. Non-GAAP gross margin ...
