Shares of the chip maker are up over 10% this morning after reporting a top and bottom line beat with its fiscal third quarter earnings release on Tuesday, June 25th, after the market close.
Revenue came in at $4.79 billion, versus a $4.69 billion consensus, while earnings per share were $1.05, beating estimates of $0.79 per share.
Most important for the stock move was the strong outlook for a normalization of supply and demand in memory.
"We are confident that the long-term demand outlook for memory and storage is compelling, driven by broad secular trends such as AI, autonomous vehicles, 5G, and IoT," CEO Sanjay Mehrotra told analysts after the bell on Tuesday. "The new Micron is well positioned to take advantage of these trends, with innovative products, a responsive supply chain, and well-established relationships with customers worldwide."
The company said it still expects to see "healthy year-over-year growth" in global DRAM semiconductor demand, but noted further capex cuts would be needed in order to achieve a better supply-demand balance in current inventory levels.
Additionally, the company addressed the current Huawei embargo and how it is affecting them, as Huawei accounts for about 13% of Micron's total revenue.
For in-depth coverage of Micron and what investors need to know post-earnings get over to Real Money.