(Reuters) -Micron Know-how (MU) forecast first-quarter income above Wall Road estimates on Wednesday, betting on robust demand for its excessive bandwidth reminiscence (HBM) chips utilized by the AI business, sending the corporate’s shares up 10% after the bell.
The corporate is among the solely three suppliers of HBM chips together with South Korea’s SK Hynix and Samsung, which has allowed the U.S. agency to money in on demand for semiconductors that assist energy generative AI expertise.
The AI growth has additionally helped Micron cushion the hit from a reminiscence chip stock glut in PC and smartphone markets.
The corporate forecast income of $8.70 billion, plus or minus $200 million, for the primary quarter, in contrast with estimates of $8.28 billion, in response to LSEG knowledge.
Micron’s outcomes sometimes set the tone for the chip sector because it reviews forward of friends and serves a broad shopper base spanning the PC, knowledge heart and smartphone industries.
The corporate stated in June its HBM chips had been bought out for the 2024 and 2025 calendar years. The chips are used within the AI processors designed by Wall Road darling Nvidia.
Micron expects adjusted gross margin for the primary quarter to be 39.5%, plus or minus 1%. Analysts had anticipated an adjusted gross margin of 37.7%.
For the fourth quarter, the corporate’s income jumped 93% to $7.75 billion.
(Reporting by Harshita Mary Varghese in Bengaluru; Enhancing by Shounak Dasgupta)
