Micron Soars 14% as Stellar Earnings Showcase Booming Memory Chip Demand
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Micron Technology recently posted outstanding Q2 revenue and earnings growth that beat expectations. The stock price surged over 14% following the news.
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Revenue was up 58% year-over-year to $5.82 billion. The company swung to an adjusted profit of $0.42 per share from a $1.91 per share loss last year.
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Favorable memory chip supply/demand and higher prices drove significant margin improvements. Management forecasts further price increases.
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Guidance for next quarter is well above analyst expectations, with 76% year-over-year revenue growth to $6.6 billion projected.
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At 6.4x sales, Micron stock trades at a discount. Its market cap could jump 67% to $217 billion if strong growth continues.