[ad_1]
Micron Technology has reported fourth-quarter revenue growth that is the highest in over a decade, thanks to the increasing demand for its memory chips used in the AI industry. The company’s shares saw a significant increase of almost 14% after the announcement, with Micron forecasting first-quarter results that surpass Wall Street estimates.

As one of the three main providers of high-bandwidth memory (HBM) chips, Micron has been able to capitalize on the demand for semiconductors that support generative AI technology. The company’s HBM chips are essential for AI-focused graphics processing units, aiding in processing large amounts of data efficiently.

Micron CEO Sanjay Mehrotra highlighted the strong demand from data center customers and healthy customer inventory levels. The company’s forecast for the first quarter includes record revenue of approximately $8.7 billion, with a projected gross margin increase to around 39.5%.

The AI boom has also helped Micron navigate through a memory chip inventory glut in PC and smartphone markets. With the expected rise of AI-infused personal computers, which require more memory chips, Micron is well-positioned to benefit from this trend.

Micron’s Chief Business Officer Sumit Sadana anticipates significant revenue growth in key product categories, including HBM, high capacity memory, and data center flash storage, each projected to generate billions of dollars in revenue by 2025.

For the first quarter, Micron forecasts an adjusted profit of $1.74 per share, exceeding analysts’ estimates. The company’s strong performance sets a positive tone for the chip sector as it serves a diverse client base across various industries.

(Photo: Micron Technology Inc. offices in Shanghai, China. Credit: © Reuters/Aly Song/File Photo)

[ad_2]
SOURCE