Micron poised to post higher operating income than peers in upcoming quarter
Micron Technology is expected to report operating income that exceeds that of the so-called Magnificent Seven companies, driven by strong demand for its memory chips amid the AI surge.
Micron Technology (MU) is projected to generate more operating income in the coming quarter than each of the seven large-cap technology firms often grouped as the "Magnificent Seven," which include Apple, Alphabet, Microsoft, Amazon, Meta, Tesla and Nvidia. The forecast follows a recent earnings report in which Micron beat analysts' sales and profit estimates, citing robust demand for its memory products linked to artificial-intelligence applications. The company added roughly $43 billion in revenue compared with the same quarter a year earlier, and its operating margins improved across all segments. Micron's market capitalization is about $1.1 trillion, making it the smallest of the group. Its shares have risen about 285 percent year-to-date.
"Micron added about $43 billion in sales in the most recent quarter compared to the year-ago quarter," said Brian Sozzi, executive editor at Yahoo Finance.
Analysts noted that while the earnings guidance was strong overall, the company provided a cautious outlook on future margins.