Micron Technology Inc, 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 would be about US$8.8 billion, the company said in a statement on Thursday. That compares with analysts’ average estimate of US$8.55 billion.
Profit would be about US$1.57 a share, excluding certain items, compared with the US$1.48 analysts expected on average.
Photo: Bloomberg
Micron shares, up 22 percent this year through Thursday’s close, jumped about 2 percent in extended trading following the announcement.
Micron is seeing strong demand for components used in data center machines that develop and run artificial intelligence software. Its traditional markets — chips for phones and PCs — have been weaker, but they have been showing signs of a recovery.
Second-quarter sales climbed 38 percent to US$8.05 billion, Boise, Idaho-based Micron said, compared with analysts’ average forecast of US$7.91 billion.
Earnings grew to US$1.56, minus certain items, topping the US$1.43 prediction.
“Data center revenue tripled from a year ago,” Micron CEO Sanjay Mehrotra said in the statement. “We are on track for record revenue and significantly improved profitability in fiscal 2025.”
The company’s high-bandwidth memory 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.”
One weak spot was the company’s gross margin, the percentage of sales remaining after deducting the cost of production. It was 37.9 percent in the second quarter on an adjusted basis, missing the 38.4 percent estimate. The forecast for the current period, at 36.5 percent, also fell short of predictions.
“We’re expecting that we’ll see margins in the fourth quarter that could be somewhat better, and conditions in the market are improving,” Manish Bhatia, executive vice president of global operations, said in an interview.
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