Micron Technology's offices in Shanghai in 2023.Aly Song/Reuters
Chipmaker Micron Technology MU-Q 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-centre investments as technology companies race toward artificial general intelligence. The resulting growth in AI data-centre 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 chips essential to AI technology, along with South Korea’s Samsung and SK Hynix.
The chipmaker forecast third-quarter revenue in the range of US$33.5-billion, plus or minus US$750-million, compared with analysts’ average estimate of US$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-per-cent increase to its quarterly dividend.