Micron Technology (NASDAQ:MU) saw its shares jump Thursday after the semiconductor company posted quarterly results that came in better than expected. The chipmaker posted a loss of $1.43 per share, compared to analyst estimate of a $1.61 loss, according to FactSet. Revenue of $3.75 billion in the fiscal third quarter was better than an estimate of $3.65 billion.
The company said the trough of the semiconductor industry might be over as price trends improved.
“The ongoing improvement of customer inventories and memory content growth are driving higher industry demand, while production cuts across the industry continue to help reduce excess supply,” Micron said.
Piper Sandler analyst Harsh Kumar upgraded Micron to neutral from underweight and said it looks as if the inventory correction is abating, as there are signs of volume and pricing improvements in the second-half of the year.
Kumar added that comments from Micron's management on its earnings call indicate that the revenue downturn looks to be behind the company as inventory levels for PCs and smartphones are getting close to normal.
Kumar also boosted his per-share price target to $70 from $45.
For the period ending June 1, Micron lost an adjusted $1.43 per share as revenue came in at $3.75B. A consensus of analysts expected the company to lose $1.57 per share on $3.68B in revenue.
MU shares dropped in price $3.20, or 4.8%, to $63.87.
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