Wall Street is expecting chipmaker Micron to report an 80% jump in revenue in its third-quarter earnings results.
The company’s stock was up around 0.5% during mid-day trading on Wednesday ahead of earnings. Micron is expected to report third-quarter revenue of $6.7 billion, according to FactSet. That’s an 80% increase from this time last year, when the chipmaker reported revenue of $3.7 billion.
Micron’s shares have climbed 66.3% so far this year, and reached a record high closing price of $153.45 on June 18.
Jay Woods, chief global strategist at Freedom Capital Markets, told Bloomberg the chipmaker has “ridden the coattails of the whole AI phenomenon.” Meanwhile, Hans Mosesmann, senior research analyst at Rosenblatt Securities, said the firm expects “Micron to deliver a beat-and-raise as we enter one of the largest memory cycles in history,” in a Tuesday note, according to Bloomberg.
Micron is one of the largest semiconductor companies in the world, and the only U.S.-based manufacturer of computer memory chips. In April, Micron received $6.1 billion in Chips and Science Act funds to build chip fabrication plants (fabs) in central New York and Idaho.
“This is a historic moment for semiconductor manufacturing in the U.S.,” Micron chief executive Sanjay Mehrotra said in a statement at the time. “Micron’s leading-edge memory is foundational to meeting the growing demands of artificial intelligence, and we are proud to be making significant memory manufacturing investments in the U.S., which will create many high-tech jobs.”
Micron’s federal funding is part of a $100 billion public-private investment over the next 20 years to build a “mega-fab project” to produce memory chips in central New York that is expected to create 50,000 jobs, Senate Majority Leader Chuck Schumer (D-N.Y.) has said. New York’s share of Micron’s CHIPS Act funding will go toward construction of the first two of four fabs by the end of the decade, Schumer added.