21 March 2024 – Memory chip maker Micron Technology has experienced a surge in its shares, fueled by robust demand for high-end memory chips, driven primarily by the rising adoption of artificial intelligence (AI). The company’s upbeat third-quarter revenue forecast, which surpasses estimates, and an unexpected quarterly profit announcement have propelled its stock price up by more than 16% in extended trading.
Micron’s CEO, Sanjay Mehrotra, highlighted the strong demand for its high bandwidth memory (HBM) chips, particularly in the development of complex AI applications. These chips have experienced such high demand that the company’s supply for 2024 is already sold out, with a significant portion of its 2025 supply already allocated. The company’s collaboration with industry leaders like Nvidia further solidifies its position in the AI chip market.
Additionally, Micron’s expansion into flash memory and dynamic random access memory (DRAM) chips for various computing devices, coupled with improving pricing across all memory and storage markets, bodes well for its future growth prospects. With a promising outlook for the remainder of fiscal 2024, Micron expects its gross margins to improve significantly, further reinforcing investor confidence in the company’s long-term tr
