Micron Technology Q3 Results: Revenues beat expectations on strong AI demand.

Micron Technology Q3 results: Key insights

1. Micron Technology’s revenue of $3.75 billion versus $3.69 billion for the prior quarter and $8.64 billion for the same period last year.
2. Rising demand for its memory chips from the rapidly-growing artificial intelligence sector, helped push revenues higher. 
3. Micron’s revenues and profits for the quarter beat analyst expectations!
4. However, Micron which relies on China for a part of its revenues has been facing some backlash from the Asian country as US-China relations sour. 
5. China alone contributed 16% of the company’s total revenues in 2022.

Micron Technology share price and Micron Technology results:

After the closing bell on June 28, 2023, the company witnessed a rise of over 2% in its stock shares. Throughout 2023, their shares have experienced a remarkable increase of 34%.

This surge is primarily attributed to optimistic speculations that the company's memory chips will observe a significant surge in demand for servers associated with generative AI services. The growing popularity of AI services like the ChatGPT chatbot, is one of the driving factors behind this optimistic outlook.

Micron Technology share historical performance:

(Data as on June 29, 2023)

Decoding Micron Technology Q3 earnings:

Micron Technology Revenue

• Micron's third-quarter revenue of $3.75 billion beat estimates of $3.65 billion, while fourth-quarter revenue forecast of about $3.9 billion plus or minus $200 million, was largely in line with expectations, according to Refinitiv data.

Micron Technology net profit:

The company's adjusted net loss of $1.43 per share was narrower than estimates for a $1.58 per share loss.

Micron Technology dividend:

Micron’s Board of Directors has declared a quarterly dividend of $0.115 per share, payable in cash on July 25, 2023, to shareholders of record as of the close of business on July 10, 2023.

Micron Technology share price target

• Renowned brokerage Needham raised its share price target on the stock to $80 from $71. 
• Renowned brokerage Raymond James raised its share price target to $76 from $70.
• Brokerage Barclays raised its share price target on the stock to $75 from $70.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.