"If you’re wondering why you’ll be paying more for a new PC or smartphone next year, Micron’s MU -3.01%decrease; red down pointing triangle latest financial results provide a big clue.
The maker of memory chips posted record revenue and operating income for its fiscal first quarter late Wednesday; revenue jumped 57% year over year to $13.6 billion. That follows several quarters of strong growth for both metrics. Fueling the growth: demand for artificial intelligence systems that is sharply boosting sales of the specialized type of memory those products need.
And the party seems far from over. Micron projected that sales will more than double to a record of $18.7 billion in the current quarter ending in February, while adjusted operating income will surge more than fivefold to $11.3 billion.
Analysts were expecting a strong forecast given sharply rising memory prices being reported by industry groups and Micron’s rivals over the past couple of months. But even they undershot. Micron’s revenue forecast beat Wall Street’s consensus target by 31%—the highest such beat in at least five years, according to FactSet.
That explains why a stock that has already more than doubled in the past year rose another 8% in after-hours trading Wednesday."
https://www.wsj.com/tech/microns-blowout-results-are-bad-news-for-anyone-buying-a-new-phone-or-pc-next-year-1b303c09
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