June 24 : Micron Technology forecast quarterly revenue above Wall Street estimates on Wednesday, signaling that insatiable demand for AI-related infrastructure will continue to drive strong demand for its memory chips.
Shares of the company rose around 4 per cent in extended trading.
The company expects fourth-quarter revenue of $50 billion, plus or minus $1 billion, compared with analysts’ average estimate of $43.58 billion, according to data compiled by LSEG.
The results and forecast show how the explosive growth of generative AI has turned products such as high-bandwidth memory (HBM) into critical components for large scale data centers, which has sent prices soaring.
Micron, a key supplier for Nvidia’s AI processors, has benefited as AI chip and server makers rush to secure limited supply.
It reported third quarter revenue of $41.46 billion, flying past estimates of $35.85 billion.
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