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• Micron reports market-beating results for its fiscal Q1.
• Delano Saporu says AI will be a big driver for it in 2024.
• Micron stock is now up 60% versus the start of this year.

Micron Technology Inc. (MU) is trending up in extended hours on Wednesday after reporting market-beating earnings for its fiscal first quarter.

Micron issues upbeat guidance

Shareholders are happy because the management’s guidance for the current quarter topped Street estimates as well.

Micron now forecasts its revenue to come in at $5.3 billion in the second quarter. Analysts, in comparison, were at $4.97 billion. According to Delano Saporu of New Street Advisors:

I think the big driver in 2024 for Micron is going to be AI. There’s going to be a lot more demand and I think that’s why I’d be a buyer here.

In the earnings release, Sanjay Mehrotra – the Chief Executive of Micron Technology also said that the Boise-headquartered firm that makes memory chips is well-positioned to capitalize on artificial intelligence related opportunities.

"The recovery is happening quicker than expected...at the end of the day here I think you continue to hold, or continue to buy the stock here" CFRA's Angelo Zino on Micron$MU #earnings @JonFortt pic.twitter.com/5PImFIRQ2o

— CNBCOvertime (@CNBCOvertime) December 20, 2023

Micron Q1 earnings snapshot

• Lost $1.23 billion versus the year-ago $1.43 billion
• The per-share loss also narrowed from $1.31 to $1.12
• Adjusted loss on a per-share basis printed at 95 cents
• Revenue jumped 18% year-on-year to $4.73 billion
• Consensus was $1.01 a share of loss on $4.58 billion revenue

Micron stock is now up about 60% versus the start of this year. Still, Saporu told CNBC ahead of the earnings report:

I think some of that [tailwinds] is priced in but some of that is not priced in.

Note that CEO Mehrotra expects Micron Technology to further improve its fundamentals in the coming year with the total addressable market hitting a record in 2025.

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