Micron Exceeds Q3 Revenue Estimates Driven by Strong Demand for AI Chips – News18

Micron Technology beat analysts’ estimates for third-quarter income on Wednesday, pushed by demand for its reminiscence chips from the fast-growing synthetic intelligence sector.

Shares of the corporate rose about 3% in buying and selling after the bell. They have gained about 34% this yr.

CEO Sanjay Mehrotra stated clients continued to cut back their extra stock within the quarter with inventories within the PC and smartphone segments being near regular ranges.

As a consequence, Micron is seeing improved pricing developments and elevated confidence that the business has handed the underside for development and income, he added.

Micron reported income of $3.75 billion for the quarter ended May 31, in contrast with estimates of $3.65 billion, in line with IBES information from Refinitiv.

Soaring demand from the generative AI sector, which has garnered heightened investor consideration following the viral recognition of OpenAI’s ChatGPT, has helped prop up gross sales amid weak point in Micron’s conventional smartphone and PC markets.

The proliferation of generative AI will seemingly gasoline a soar in demand for information to feed massive language fashions and will increase the necessity for extra storage chips, analysts have stated.

U.S. chipmakers are additionally being caught up within the U.S.-China know-how spat. Last month, China’s our on-line world regulator failed Micron’s merchandise in a safety overview and barred purchases by operators of key infrastructure.

Micron, the most important U.S. reminiscence chipmaker, has stated that it expects the ban to influence about half of its income from China-headquartered corporations, which equates to a low-double-digit proportion of whole income.

The firm reiterated that a number of of its clients together with telephone producers have been contacted by representatives of the Chinese authorities in regards to the future use of the corporate’s merchandise.

Micron fourth-quarter income of $3.9 billion plus or minus $200 million for the quarter ending Aug. 31, largely in step with expectations.

The firm, which makes DRAM and NAND flash reminiscence chips, reported a internet lack of $1.9 billion for the third quarter, in contrast with a revenue of $2.63 billion a yr earlier.

(This story has not been edited by News18 employees and is printed from a syndicated news company feed – Reuters)