Micron Technology MU forecast first-quarter revenue above market estimates on Tuesday, betting on booming demand for artificial intelligence hardware to boost sales of its advanced memory chips.
Shares of the memory-chip maker rose 4 per cent in extended trading.
The race to build the most sophisticated AI models and expand the data centre infrastructure that they run on has boosted demand for Micron’s high-bandwidth memory chips, or HBM.
Micron supplies HBM for some of AI chip leader Nvidia’s NVDA-Q -1.49%decrease semiconductors, which dominate the lucrative AI accelerator market.
Much of the competition among the world’s largest memory suppliers – Micron, SK Hynix and Samsung SSNLF +9.01%increase – has centered on becoming a key supplier to Nvidia, owing to the world’s most valuable company’s dominant market position.
Micron forecast first-quarter sales of US$12.5-billion, plus or minus US$300-million, compared with the analysts’ average estimate of US$11.94-billion, according to data compiled by LSEG.
The company reported revenue of US$11.32-billion for the fourth quarter, beating estimates of US$11.22-billion.
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