Memory-chip maker Micron, one of the market’s biggest gainers over the past year, reported second-quarter revenue of $41.46 billion, far above analysts’ expectations of $35.6 billion. The company’s own previous high end of guidance had been $32.75 billion, making the result even stronger than its earlier outlook.
Micron also posted net profit of $25.11 per share, compared with analysts’ forecast of $20.5 per share. The company was one of the biggest stock-market sensations on Wall Street, with its share price rising 762% over the past year and its market value crossing $1 trillion for the first time. In June last year, by comparison, its valuation was only $136 billion.
The stock had fallen more than 3% in recent days as investors took profits across the global semiconductor sector. Micron’s results were closely watched after a period of selling in chip shares, with investors hoping the numbers would restore momentum to the sector.
Micron is the only American company among the fast-growing memory-chip stocks, alongside South Korea’s SK Hynix and Samsung. All three have recently passed the $1 trillion market-cap mark, driven by surging demand for AI servers and the growing memory requirements of Nvidia-based AI systems, a bottleneck the industry calls the “memory wall.”
