Wall Street gave Micron Technology's (NASDAQ: MU) latest quarterly results a thumbs down, even though the company's top and bottom lines were better than what analysts were looking for. This shouldn't be surprising if you take a closer look at the company's numbers.

Thanks to falling memory prices, Micron's revenue dropped a whopping 57% year over year in the third quarter of fiscal 2023 (for the three months ended June 1, 2023) to $3.75 billion, and the company swung to a loss. Additionally, Micron's guidance for the current quarter points toward a year-over-year revenue contraction of 41%.

However, CEO Sanjay Mehrotra believes that "the memory industry has passed its trough in revenue, and we expect margins to improve as industry supply-demand balance is gradually restored." One catalyst that could help restore this balance is artificial intelligence (AI) -- a term that was mentioned several times on Micron's earnings call.

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Source Fool.com