September 26, 2024 - $Micron Technology (MU.US)$ shares rise 17.18% to $112.220 on Thursday. Yesterday, the company reported its better-than-expected results for the fourth quarter and full year of fiscal 2024.

Fiscal Q4 2024 highlights

• Revenue of $7.75 billion versus $6.81 billion for the prior quarter and $4.01 billion for the same period last year;

• GAAP net income of $887 million, or $0.79 per diluted share;

• Non-GAAP net income of $1.34 billion, or $1.18 per diluted share;

• Operating cash flow of $3.41 billion versus $2.48 billion for the prior quarter and $249 million for the same period last year.

Fiscal 2024 highlights

• Revenue of $25.11 billion versus $15.54 billion for the prior year;

• GAAP net income of $778 million, or $0.70 per diluted share;

• Non-GAAP net income of $1.47 billion, or $1.30 per diluted share;

• Operating cash flow of $8.51 billion versus $1.56 billion for the prior year.

Statement by CEO

“Micron delivered 93% year-over-year revenue growth in fiscal Q4, as robust AI demand drove a strong ramp of our data center DRAM products and our industry-leading high bandwidth memory. Our NAND revenue record was led by data center SSD sales, which exceeded $1 billion in quarterly revenue for the first time,” said Micron Technology President and CEO Sanjay Mehrotra. “We are entering fiscal 2025 with the best competitive positioning in Micron's history. We forecast record revenue in fiscal Q1 and a substantial revenue record with significantly improved profitability in fiscal 2025.”

Analysts' Reactions

Micron's earnings report again showed Wall Street the significant financial gains the company is experiencing from the surge in AI popularity. This is primarily due to strong demand from data centers, which has compensated for the weaker performance in sectors such as personal computers and mobile devices, where high inventory levels persist. Although there had been concerns that Micron might fall short of expectations with its forecast, the company's ability to exceed these estimates has bolstered Wall Street's confidence in its financial outlook.

Here is today's ratings for Micron Technology:

• Morgan Stanley analyst Joseph Moore maintains with a hold rating, and adjusts the target price from $100 to $114;

• Goldman Sachs analyst Toshiya Hari maintains with a buy rating, and adjusts the target price from $158 to $145;

• J.P. Morgan analyst Harlan Sur maintains with a buy rating, and maintains the target price at $180;

• BofA Securities analyst Vivek Arya maintains with a buy rating, and sets the target price at $125;

• Citi analyst Christopher Danely maintains with a buy rating, and maintains the target price at $150.

Movements in Sector

Shares of Semiconductor and Chip Stocks Are Trading Higher Following Strong Earnings From Micron. Applied Material rises over 6%; ASML rise over 4%, MRVL and AMD rise over 3%.