Micron Technology reported adjusted revenue for its fiscal fourth quarter, exceeding the street estimate of roughly $52 billion. The Boise-based memory maker posted a year-over-year growth rate of about 370%, a figure that Bloomberg Television anchors noted serves as a test for the current market appetite for the artificial intelligence trade.
The company's adjusted earnings per share came in at $33.42, surpassing the analyst consensus. Gross margin expanded to 87%. For the fiscal first quarter, Micron guided for adjusted EPS between $37.15 and $39.15, a range whose low end sits above the average analyst estimate. Revenue guidance for the current quarter stands at $60 billion to $63 billion.
A primary driver of the results was the data center segment. Fourth-quarter core data center revenue reached $18 billion, a significant beat against estimates. Cloud memory revenue also exceeded expectations, coming in at $16.28 billion versus a $15 billion estimate. Despite these figures, Micron shares remained largely unchanged in trading, having already rallied approximately 40% from summer lows and rising close to 300% year-to-date.
The earnings release arrived on a day of mixed market performance. The S&P 500 closed lower on the day, marking a monthly decline. The Dow Jones Industrial Average lost about 400 points to finish September lower. In contrast, the Nasdaq indices gained on the day and remained positive for the month, while the Russell 2000 fell 11 points to close September lower.
Bloomberg Television analysts attributed the sector rotation to a heavy volume of economic data released during the day, including core personal consumption expenditure numbers that influence Federal Reserve policy. Approximately 40% of investors now expect the Fed to hold rates steady at its late-October meeting. Information technology and consumer discretionary sectors led gains in the S&P 500, while consumer staples lagged.
The market's focus on long-term AI spending continued beyond Micron's immediate numbers. Analysts pointed to comments from recent earnings calls by SanDisk and Nvidia regarding multi-year forecasts through 2027 and 2028 as more critical than single-quarter results. SanDisk shares, which had risen as much as 14% earlier in the year, were down on the day, though both it and Micron have outpaced Nvidia's performance year-to-date.