The chipmaker's shares have rallied by more than 20% just in this week alone, marking its best week in almost eight months. Also, the company's stocks have risen by an impressive 700% in the past year as AI continues to change the semiconductor industry.
That kind of move naturally raises questions. Is the Micron pump already over, or could this rally still have more room to run?
At the moment, many investors see this narrative as anything but over.
This is because Micron has sort of become one of the leading players in the booming market of AI infrastructure.
With the increasing demand for artificial intelligence, the demand for memory chips powering data centers, AI servers, and other highly efficient processors continues to grow.
Micron is among the companies that can meet these needs. This puts the firm in an excellent position.
Thanks to limited supply and customers’ inability to acquire enough inventory, Micron has significantly enhanced its pricing and profit potential.
The Numbers Behind Micron's Bullish Run
Micron's recent financial results show exactly why Wall Street is getting more bullish.
In its latest quarter, the company reported $23.9 billion in revenue, up 196% from the same period last year. That is massive growth.
Gross margins also surged to 74%, compared to just 37% a year earlier. Net income margins also increased to nearly 58%, showing that Micron is becoming much more profitable.
Even more impressive, Micron expects revenue to climb to about $33.5 billion next quarter, with margins potentially reaching ...
