Micron Gains as AI Demand Bolsters Forecast
Micron Technology Inc., the largest US maker of computer memory chips, gained the most in nearly 13 years after giving surprisingly strong sales and profit forecasts, helped by demand for artificial intelligence gear.
Tweet on Micron share fluctuations
Micron shares had closed Wednesday at $95.77, up about 12% since the beginning of the year.#micron #chips #AI pic.twitter.com/1MDZNO2Ag8
— The_Journalbiz (@the_journalbiz) September 26, 2024
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Company’s high-bandwidth memory helps train AI systems as outlook for sales and profit comes in well ahead of estimates.
The company said robust artificial intelligence-related demand helped sales of chips for data centers. Overall revenue nearly doubled from a year earlier.
Micron expects the momentum to continue in the current quarter, saying both revenue and adjusted earnings are likely to beat analyst views.
Some details from Micron’s earnings for its fourth quarter, which ended in late August
Revenue came in at $7.75 billion, beating Wall Street expectations by about 1.3%, according to FactSet. Demand has been outpacing supply, letting Micron boost prices and secure long-term guaranteed contracts. It’s already sold out of the product for 2024 and 2025, the company said Wednesday.
The shares jumped 20% on Thursday after trading opened in New York, the stock’s biggest intraday gain since November 2011.
