Micron Q3 Revenue Hits $6.81B, Boosted by AI Demand

On June 26, Micron Technology announced its third fiscal quarter results, surpassing revenue expectations due to a significant increase in demand for memory chips driven by the thriving artificial intelligence (AI) industry and enhanced product market pricing. According to LSEG data, Micron reported a quarterly revenue of $6.81 billion, exceeding the projected $6.67 billion.

Micron forecasts that its fourth-quarter revenue will be in line with market expectations.

The company reported a Q3 revenue of $6.81 billion, marking an 81.6% increase from $3.75 billion in the same period last year. This performance exceeded FactSet's projection of $6.67 billion and surpassed the previous quarter's revenue of $5.82 billion. Operating profit for the quarter was $941 million, outperforming the market forecast of $869.1 million. The adjusted operating margin reached 28.1%, above the anticipated 26.5%. Net profit was $332 million, a significant improvement from a net loss of $1.9 billion in the previous year. Earnings per share (EPS) were $0.30, compared to a loss of $1.73 per share last year, with adjusted EPS at $0.62, higher than the expected $0.48.

In specific business segments, Micron's DRAM revenue grew 13% quarter-over-quarter to $4.7 billion, aligning with market expectations. NAND Flash revenue saw a 32% increase, reaching $2.1 billion, surpassing FactSet's forecast of $1.9 billion. The average selling prices (ASP) for both DRAM and NAND Flash increased by approximately 20% quarter-over-quarter.

Michael Schulman, Micron’s Chief Investment Officer, noted that while the company's forecast from 2-3 months ago was positive, it still did not fully meet investor expectations, despite a 67% rise in the company's stock price this year.

Looking ahead, Micron projects current-quarter revenue to be approximately $7.6 billion, with a possible variance of $200 million, matching industry expectations.

As one of the select suppliers capable of delivering high-bandwidth memory (HBM) chips for advanced AI systems, Micron stands to gain significantly. CFO Sumit Sadana stated, "We are very optimistic because, following NVIDIA, Micron is likely to be more influenced by AI growth than any other semiconductor company."

In March, Micron announced that its HBM chip capacity for 2024 was fully booked, with most of its 2025 production already allocated.