Micron Technology beats estimates as AI boom fuels unprecedented demand for memory chips

Micron Gives Upbeat Forecast After Demand Soars for Memory Chips

Micron Technology Inc., the largest US maker of computer memory chips, offered a positive forecast for the current quarter after surging prices for the components bolstered its prospects. Fiscal third-quarter revenue will be approximately $33.5 billion, the company said in a statementBloomberg Terminal Wednesday. Analysts estimated $23.7 billion on average for the period. Excluding some items, profit will be about $19.15 a share, compared with a projection of $11.29. Memory prices are soaring because of shortages fueled by AI computing demand. So-called high-bandwidth memory is critical to the data transfer in the workhorse chips for training and running AI models. That's led memory makers to allocate more production to these higher-margin orders, hurting supply of other types of memory and causing price spikes. Micron gained about 1% in late trading after the results were released Wednesday. The shares had risen 62% this year heading into the report, making it the best-performing stock on the closely watched Philadelphia Stock Exchange Semiconductor Index. For the fiscal second quarter, which ended Feb. 26, sales nearly tripled to $23.9 billion. Earnings climbed to $12.20 a share. Analysts had estimated $19.7 billion in revenue and $9 a share in profit on average, according to data compiled by Bloomberg. The company and other memory-chip makers have benefited from an unprecedented data center build-out. Their market is dominated by just three providers -- Micron, Samsung Electronics Co. and SK Hynix Inc. -- and demand is expected to stay strong for years to come. Memory shortages have been good for Micron and its peers, but hard on the broader tech industry and consumers. Supply constraints have raised prices and lowered the number of smartphones and computers slated to ship this year. HP Inc. said last month that the company has seen memory prices roughly double in the current quarter from the previous period. The global shortage is likely to persist another four to five years because of endemic constraints in semiconductor production, Chey Tae-won, head of SK Group, said this week. In the AI market, Micron is working to ramp up production of new high-bandwidth memory, or HBM4. A big question is how much Nvidia Corp. will rely on Micron for that component. Any decision by Nvidia to limit its use of Micron for the new Vera Rubin line -- and instead favor rival products -- would be a significant blow. Nvidia is the dominant maker of AI accelerators, the main processors used to power artificial intelligence. Memory components from Micron and its competitors assist those chips in holding and managing data. Last month, Micron shares surged after Chief Financial Officer Mark Murphy assuredBloomberg Terminal investors that the company is producing HBM4 in high volumes.

Memory chipmaker Micron's revenue beats estimates on demand surge from AI boom

March 18 (Reuters) - Chipmaker Micron Technology forecast third-quarter revenue above Wall Street expectations on Wednesday, betting on a surge in demand for its memory chips used in artificial intelligence hardware. Customers are committing to long-term data center investments as technology companies race toward artificial general intelligence. The resulting growth in AI data center capacity is ⁠fueling a sharp rise in demand for advanced memory and storage. Micron (MU.O), opens new tab, whose shares have gained more than 61% so far this year, is one of the only three major suppliers of high bandwidth memory (HBM) chips essential to AI technology, along with South Korea's Samsung (005930.KS), opens new tab and SK Hynix (000660.KS), opens new tab. The chipmaker raised its fiscal 2026 capital expenditure forecast to $25 ⁠billion, from its prior view of $20 billion. Micron said it expects capital expenditure to rise further in fiscal 2027, with construction-related spending set to climb by more than $10 billion from a ⁠year ago as the chipmaker expands manufacturing facilities worldwide. The company forecast third-quarter revenue of $33.5 billion, plus or minus $750 million, compared with ⁠analysts' average estimate of $24.29 billion, according to data compiled by LSEG. It reported revenue of $23.86 billion for the second ⁠quarter ended February 26, beating expectations of $20.07 billion. Micron's board also approved a 30% increase to its quarterly dividend. Reporting by Juby Babu in Mexico City; Editing by Shailesh Kuber Our Standards: The Thomson Reuters Trust Principles., opens new tab

Micron forecasts strong revenue on AI boom, shares fall on higher spending plan

March 18 (Reuters) - Micron Technology forecast third-quarter revenue well above Wall Street expectations after posting a sharp jump in the second quarter on booming demand for memory chips used in artificial intelligence systems, while tighter supply drove record earnings. But the company's $5 billion boost to its 2026 capital spending plan to keep up with the rising demand pulled the shares 4% lower in extended trading on Wednesday. Micron aims to spend more than $25 billion this fiscal year and said this could rise further in 2027 as expansion in manufacturing facilities could result in construction-related expense climbing by more than $10 billion from a year ago. Customers are committing to long-term data center investments as technology companies race toward artificial general intelligence. The resulting growth in AI data center capacity is fueling a sharp rise in demand for advanced memory and storage. Micron, whose shares have gained more than 61% this year, is one of the only three major suppliers of high bandwidth memory chips essential to AI technology, along with South Korea's Samsung and SK Hynix. "The step-up in our results and outlook are the outcome of an increase in memory demand driven by AI, structural supply constraints and Micron's strong execution across the board," CEO Sanjay Mehrotra said in his prepared remarks. The chipmaker forecast third-quarter revenue of $33.5 billion, plus or minus $750 million, compared with analysts' average estimate of $24.29 billion, according to data compiled by LSEG. It reported revenue of $23.86 billion for the second quarter ended February 26, beating expectations of $20.07 billion. Micron's board also approved a 30% increase to its quarterly dividend. (Reporting by Juby Babu in Mexico City; Editing by Shailesh Kuber and Arun Koyyur)

Memory chipmaker Micron's quarterly revenue beats estimates

March 18 (Reuters) - Chipmaker Micron Technology beat Wall Street expectations for second-quarter revenue on Wednesday, benefiting from a surge in demand for its memory chips used in artificial intelligence hardware. Customers are committing to long-term data center investments as technology companies race toward artificial general intelligence. The resulting growth in AI data center capacity is fueling a sharp rise in demand for advanced memory and storage. Micron is one of the only three major suppliers of high bandwidth memory (HBM) chips essential to AI technology, along with South Korea's Samsung and SK Hynix. The chipmaker forecast third-quarter revenue in the range of $33.5 billion, plus or minus $750 million, compared with analysts' average estimate of $24.29 billion, according to data compiled by LSEG. The company reported revenue of $23.86 billion for the quarter, beating an estimate of $20.07 billion. Its board also approved a 30% increase to its quarterly dividend. (Reporting by Juby Babu in Mexico City; Editing by Shailesh Kuber)