Micron forecasts revenue above expectations: the AI surge continues to drive the memory chip market

Micron Technology on Wednesday forecast quarterly revenue above analysts’ estimates, a sign that the artificial intelligence-driven memory chip surge is expected to continue, as Reuters reports.

The company expects revenue of $61.5 billion for the first quarter, plus or minus $1.5 billion, compared with the analysts’ average of $57.02 billion according to LSEG data. Adjusted earnings are forecast to reach $38.15 per share, above the estimate of $35.40.

The generative AI surge has made high-bandwidth memory (HBM) essential for the data centres that power artificial intelligence systems, favouring manufacturers such as Micron, a key supplier to Nvidia.

Micron is the only major American maker of HBM chips, with orders already exceeding production capacity. The surge in demand for memory in AI applications has tightened supplies and pushed up prices across the semiconductor market.

In the fourth quarter, the company’s revenue quadrupled to $54.23 billion, above the estimate of $51.07 billion, while adjusted earnings reached $33.42 per share, above the expectation of $31.61.