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US memory chip maker Micron soars after AI growth boosts revenue forecast
- Micron said revenue for its financial third quarter will be between US$6.4 billion to US$6.8 billion, ahead of analysts’ estimate of US$5.99 billion
- CEO Sanjay Mehrotra promised investors that 2024 will mark a rebound for the memory chip industry and 2025 will see record sales levels
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Micron Technology, the largest US maker of memory chips, jumped in late trading after giving a surprisingly strong revenue forecast for the current quarter, buoyed by demand for artificial intelligence (AI) hardware.
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Revenue for its financial third quarter will be US$6.4 billion to US$6.8 billion, Micron said in a statement on Wednesday. That compares with an average analyst estimate of US$5.99 billion.
Micron and its rivals are emerging from one of the worst slumps the memory chip industry has suffered, triggered by weak demand for personal computers and smartphones. But executives are optimistic about the future as the booming market for AI gear helps chip makers return to growth and profitability.
“We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multiyear opportunity enabled by AI,” president and chief executive Sanjay Mehrotra said in the statement.
The company’s shares gained 15 per cent in late trading after the results were released. They had climbed 13 per cent to US$96.25 this year through the close. Tech peers such as Western Digital Corp also gained in extended trading.
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