CNBC’s Jim Cramer on Wednesday praised Micron’s recent quarter and informed buyers why he thinks the semiconductor maker’s inventory can go increased.
“Coming into Micron’s earnings, I was wondering if the company could report anything that could justify the stock’s incredible run, and you know what? That’s exactly what they did,” he mentioned. “After this titanic quarter, I think Micron can keep running.”
Micron is a key developer of reminiscence and storage merchandise. It has profited amid the artificial intelligence increase as new know-how wants an increasing number of high-tech bandwidth reminiscence, which the corporate sells. Micron comfortably topped earnings and income estimates when it reported Tuesday. While shares initially rose in prolonged buying and selling, the inventory dipped throughout Wednesday’s session to shut down 2.82%.
Cramer pointed to a couple figures from Micron’s quarter that he discovered spectacular, particularly its 46% year-over-year income enhance. He additionally highlighted the corporate’s steerage, saying it considerably raised the outlook for the present quarter.
Cramer was additionally inspired by administration’s optimistic commentary about its high-bandwidth reminiscence merchandise for the information middle, particularly CEO Sanjay Mehrotra’s assertion that “AI-driven demand is accelerating.” Micron’s information middle merchandise are a significant driver for the robust earnings outcomes, Cramer famous. He additionally recommended the corporate appears to be efficiently utilizing AI to spice up its personal inside productiveness. Cramer added that Micron is not “just riding the data center wave like everybody else” however “actively innovating and getting products that are ideally suited for the data center to market faster than the competition.”
Micron’s enterprise would not simply revolve across the information middle, Cramer continued, saying different finish markets look strong. The firm upped it expectations for PC unit shipments, he continued, and it additionally famous that new AI-enabled smartphones require extra reminiscence chips.
The firm’s shares have almost doubled in 2025 to this point. Expectations for Micron had been extraordinarily excessive going into the quarter due to its enormous rally, Cramer mentioned, so it was troublesome for the inventory to see features regardless of the robust outcomes.
“I just hope we get more pullbacks like this so that you can buy it on weakness,” he mentioned.
Micron didn’t instantly reply to request for remark.