Micron gives upbeat sales forecast after AI fuels demand

[SEATTLE] Micron Technology, the largest US maker of computer memory chips, gave a strong sales forecast for the current quarter, bolstered by demand for artificial intelligence (AI) products.

Fiscal third-quarter revenue will be about US$8.8 billion, the company said on Thursday (Mar 20). That compares with an average analyst estimate of US$8.55 billion. Profit will around US$1.57 a share, excluding certain items, compared with the US$1.48 analysts expected on average.

Micron shares, up 22 per cent this year to Thursday’s (Mar 20) close, jumped about 6 per cent in extended trading following the announcement.

Micron is seeing strong demand for components used in data centre machines that develop and run AI software. Its traditional markets – chips for phones and PCs – have been weaker. But they have been showing signs of recovery.

Second-quarter sales climbed 38 per cent to US$8.05 billion, Boise, Idaho-based Micron said. Analysts had predicted US$7.91 billion. Earnings grew to US$1.56, minus certain items, topping the US$1.43 prediction.

“Data centre revenue tripled from a year ago,” chief executive officer Sanjay Mehrotra said. “We are on track for record revenue and significantly improved profitability in fiscal 2025.”

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The company’s high-bandwidth memory, or HBM, has become a vital piece of AI systems. Revenue from that technology crossed US$1 billion in the second quarter, Micron said, citing “strong execution and robust AI demand”. BLOOMBERG