After markets closed on Wednesday, Micron Technology (MU) reported revenue tripling in the last quarter.
Micron earned $12.20 per share, well past the $9.31 EPS expected. Revenue topped $23.86 billion. The memory supplier benefited from the hypergrowth in AI servers.
Demand for Nvidia’s GPU chips, which power AI servers, lifted Micron’s sales. Each server needs the corresponding memory and high-speed storage. Seagate (STX), SanDisk (SNDK), and WD (WDC) benefited from the AI boom.
In the current quarter, Micron is forecasting revenue to grow by over 200%. It expects revenue of $33.5 billion, compared to $9.3 billion last year.
MU stock traded down by 4.4% in after-hours trading. Speculators likely bid the stock from $400 on March 12 to over $460. The stock is selling on the news post-earnings.
If Micron shares trade lower at the open this morning, watch out for related chip stocks to fall. Intel (INTC), ADI (ADI), Qualcomm (QCOM), AMD (AMD), and NXP Semiconductor (NXPI) might open lower. Similarly, software stocks will fall in sympathy.
The SaaS stock rebound lost momentum in the last few trading sessions. Adobe (ADBE), ServiceNow (NOW), Intuit (INTU), and Salesforce (CRM) are pulling back. Despite announcing practical uses of AI chatbots to cut costs, increase product functionality, and retain customer satisfaction, SaaS stocks risk re-testing 52-week lows.
If SaaS stocks are relatively cheaper than AI-related names, it would imply that AI-related names might pull back, too.
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