Micron Predicts Third-Quarter Revenue Above Estimates

(CTN News) – As a result of the rapid adoption of artificial intelligence technologies by businesses, Micron Technology forecast third-quarter revenue above estimates on Wednesday, benefiting from the easing in the supply glut in the broader memory chip market as well as the rapid adoption of AI technologies by businesses.

During extended trading on Friday, the shares of a company based in Boise, Idaho, increased by 13.4%, following a gain of over 60% over the past year in the shares of that company.

There is no doubt that Micron reports results ahead of other chipmakers and it is closely followed since the expected sales for its memory hardware are used as an indicator of the demand for various types of chips and end market segments.

The demand for Micron’s high bandwidth memory (HBM) chips, which are used for the development of complex AI applications, has been rising due to the fact that tech companies are competing with each other to incorporate generative artificial intelligence into their products and services. In this year’s forecast, analysts expect that the company’s share of the high-margin HBM market will grow.

The company’s CEO, Sanjay Mehrotra, had made a Micron statement last December that the company’s inventory levels at its data centers had improved and were expected to be back to normal by the end of the year.

It is estimated that the company will generate revenues of $6.60 billion for the current quarter, plus or minus $200 million, a large improvement over the $6.03 billion that was expected, according to data from LSEG.

Micron announced revenue of $5.82 billion in its second quarter, which was higher than the $5.35 billion expected by analysts.

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