Micron Guides $61.5B; Chipmakers Rise Despite Bond Selloff
Micron beat forecasts after Wednesday's close and guided higher. Fiscal fourth-quarter revenue was $54.23B, against a $52.6B consensus. Adjusted earnings came to $33.42 a share, versus $32.56 expected.
The guidance is the bigger number. Micron expects $61.5B in revenue this quarter, plus or minus $1.5B; the Street was near $57B. Long-term supply agreements rose to $32B from $22B.
Even so, Micron is down about 1% premarket. Gross margin guidance slips to 86.25% from 87%, and the stock has risen roughly 280% this year.
The market did not read this as a Micron story.
It read it as a sector story. Nvidia and AMD are up about 1% premarket. Japanese chipmakers lifted the Nikkei more than 2% in early trading.
The new development this morning is in bonds. The 10-year Treasury yield touched 5.34% overnight, its highest since 2002. Wednesday's close was around 5.25%.
Yields are rising despite cooler inflation. Yesterday's brief led with core PCE slowing to 3.0%; the bond market moved past that data in a day.
