Micron Technology, a leading memory-chip manufacturer, exceeded expectations in its fiscal second quarter and surprised investors with a profitable performance. The company’s strong results were buoyed by increased sales in artificial-intelligence infrastructure, propelling its stock upward.

Based in Boise, Idaho, Micron reported adjusted earnings of 42 cents per share on revenue of $5.82 billion for the quarter ending Feb. 29. This outperformed analysts’ projections, who anticipated a loss of 25 cents per share on revenue of $5.35 billion. In comparison, during the same period last year, Micron faced an adjusted loss of $1.91 per share on $3.69 billion in revenue.

Looking ahead, Micron provided optimistic guidance for the current quarter, projecting adjusted earnings of 45 cents per share on revenue reaching $6.6 billion. This forecast surpassed analysts’ expectations of 9 cents per share earnings on $6 billion in revenue for the fiscal third quarter. In the corresponding period last year, Micron reported an adjusted loss of $1.43 per share on revenue totaling $3.75 billion.

Despite facing five consecutive quarters of losses due to market fluctuations, Micron’s latest performance indicates a positive turn.

Following the earnings report, Micron’s stock surged over 13% in after-hours trading, reaching $108.90. In regular trading on Wednesday, it rose 2.4% to close at $96.25.

Micron’s CEO, Sanjay Mehrotra, attributed the strong results to the team’s effective strategies in pricing, products, and operations. He expressed confidence in the company’s product lineup and anticipated a robust second half of 2024, particularly emphasizing Micron’s position to benefit from the artificial-intelligence trend in the semiconductor industry.

The company’s stock has been on an upward trajectory this year amid hopes for a recovery in the memory-chip market, with a 65% increase over the past 12 months. Several Wall Street firms raised their price targets for Micron stock in anticipation of its earnings report, reflecting positive sentiment in the market.

Moreover, Micron is expected to capitalize on the growing demand for AI infrastructure spending, leveraging its high-bandwidth memory chips like HBM3e products. Competing with industry giants like Samsung and SK Hynix, Micron remains well-positioned to cater to data center needs with its advanced memory solutions.

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