Micron Technology's third-quarter results exceeded expectations: benefiting from the wave of generative artificial intelligence

On the morning of June 29, Beijing time, it was reported that on Wednesday, local time, the US memory chip giant Micron Technology announced its third-quarter results, which exceeded Wall Street analysts' expectations. the main benefits come from two aspects: the wave of generative artificial intelligence has boosted demand for memory chips (mainly memory chips and flash memory chips), while in the traditional PC and smartphone markets The problem of oversupply of memory chips has been alleviated.

Micron shares rose 3% in after-hours trading (up only slightly during the day's intraday trading), spurred by positive earnings. Compared with the beginning of the year, Micron's share price has risen by 1/3. The most important driving force of this round of rise comes from the industry wave of generative artificial intelligence. The market believes that the popularity of ChatGPT will lead to the vigorous development of generative artificial intelligence technology and servers, thus boosting the demand for Micron technology memory chips.

On the results, Micron Technology CEO Sanjie Meilotra (Sanjay Mehrotra) said that the recent accelerated popularity of generative artificial intelligence technology, artificial intelligence servers for memory chips and memory chips market, more than expected, but at the same time, the mainstream data center server storage chip market, continues to remain depressed.

Merotra also mentioned that some customers continue to reduce memory chip inventory, which is conducive to the trend of chip prices, which has also brought confidence to the memory chip market, people believe that the industry has come out of the bottom of business growth and total revenue. Will go up.

During the global COVID-19 epidemic, consumer spending on smartphones and personal computers skyrocketed, which naturally pulled up orders for memory chips, but after the end of the epidemic, the market demand for these two major devices came to an abrupt end, resulting in a decline in the price of memory chips and a sharp increase in inventory in the hands of customers.

Kinngai Chan Chang, general manager of Summit Insights Group, a US technology investment research firm, said they thought the current round of memory chip inventory adjustment was over.

Chang Jingang said that by understanding the actual situation in the industry, he has found a positive signal that the demand for memory chips is beginning to stabilize, but in the second half of this year, the demand for memory chips in the three areas of personal computers, smartphones and traditional servers will remain complex.

In the third quarter, Micron achieved sales of $3.75 billion, exceeding Wall Street analysts' average expectations of $3.65 billion. Micron expects revenue of $3.9 billion (within the range of $200m) for the current fourth quarter, which is basically in line with analysts' expectations.

In terms of adjusted profit, Micron posted a net loss of $1.43 per share, below analysts' expectations of a loss of $1.58 per share.