Micron's Sales 'Exceed Expectations' Amid AI Boom... Rise in After-Hours Trading

U.S. semiconductor company Micron recorded sales exceeding expectations, driven by the expanding demand for artificial intelligence (AI).

On the 28th (local time), Micron announced that its revenue for the third quarter of fiscal year 2023 (March to May) was $3.75 billion, with a net loss of $1.896 billion. Revenue decreased by 50.7% compared to the same period last year ($8.642 billion), and net income turned to a loss during the same period.

Micron's quarterly revenue surpassed analysts' estimates of $3.69 billion. Although demand for semiconductors for smartphones and PCs weakened, the surge in generative AI, such as 'ChatGPT,' expanded demand for AI semiconductors, resulting in sales exceeding initial expectations.

Loss per share was also $1.43, better than the analysts' forecasted loss of $1.59 per share.

Experts predict that with the development of generative AI, the demand for data to process large-scale language models will significantly increase, leading to a substantial rise in demand for AI semiconductors in the future.

Micron expects to record $3.9 billion in revenue for the fourth quarter of the fiscal year (May to August).

Sanjay Mehrotra, CEO of Micron, stated, "We believe the memory industry has passed the bottom," adding, "As the industry's supply and demand balance gradually recovers, margins are expected to improve." However, he expressed concern that China's sanctions banning the sale of Micron products would be a significant headwind slowing Micron's recovery.

Micron's stock price rose about 5% in after-hours trading following the earnings announcement.