Micron Technology (NASDAQ:MU) shares moved skyward Wednesday after the semiconductor manufacturer missed expectations on the top and bottom lines in its second quarter results.
Micron reported a loss of $1.91 per share on revenue of $3.69 billion. Analysts polled by Refinitiv anticipated a loss of 86 cents per share on revenue of $3.71 billion.
Reports say Micron’s technology prowess as it ramps production of its 1-beta DRAM and 232-layer NAND will expand bit shipments without additional capex spend.
Micron's 1-beta DRAM will expand its High Bandwidth Memories (HBM2E) exposure in ChatGPT.
Barclays analyst Tom O'Malley, who has an overweight rating and $70 per-share price target on Micron, noted the "persistent" weakness in several end markets has pushed the recovery out and resulted in lower book value for Micron, but it is "well positioned," especially as the data center improves.
"We think the stock works despite the reset number and the name plays into the AI theme that is a real driver for the [data center] business into the next [fiscal year]," O'Malley wrote in an investor note.
Bank of America analyst Vivek Arya, who rates Micron shares neutral, also said there is "no quick fix," but it looks like the weakness in the memory market is starting to subside, even if Micron ships less product and loses "modest share" to Samsung.
MU shares popped $3.80, or 6.4%, to $63.08.
