Memory chip giant Micron Technology has defied expectations with a strong quarterly profit and an exceptionally bullish forecast, propelled by the insatiable demand for AI-powered technologies. Shares skyrocketed over 16%, potentially setting the stage for a record-breaking close.
The exceptional performance signals a seismic shift in the semiconductor industry, where high-performance memory is the critical fuel for advanced AI systems. Micron CEO Sanjay Mehrotra revealed that their advanced HBM chips are completely sold out through 2024, with a majority of their 2025 supply already spoken for.
This success is further solidified by Micron’s recent partnership with AI powerhouse Nvidia. Supplying HBM 3E chips for Nvidia’s next-generation GPUs breaks a South Korean monopoly and underscores Micron’s growing prominence in this high-margin market. Additional major HBM customer announcements are expected, further boosting growth prospects.
“Micron’s impressive results suggest that GenAI momentum is driving significant growth,” Bob O’Donnell of Technalysis Research told Reuters, emphasising the vast opportunities for HBM suppliers. The positive news sparked a rally in the wider chipmaking sector, with peer Western Digital seeing its stock jump.
Beyond the immediate surge, Micron’s report offers a glimpse into a revitalised memory chip market. AI-driven demand, coupled with improving pricing, signals a strong end to the recent industry slump. It heralds a new era of profitability where Micron is positioned to lead the charge.
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