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Micron AI Memory Demand Skyrockets
18 Dec
Summary
- Micron's Q1 earnings per share surged to $4.78, beating forecasts.
- Revenue climbed 57% year-over-year to $13.64 billion.
- High-bandwidth memory chip market to reach $100 billion by 2028.
Memory chip manufacturer Micron Technology Inc. has significantly surpassed financial expectations, reporting first-quarter earnings of $4.78 per share and revenue of $13.64 billion. This represents a 57% increase in revenue compared to the previous year, fueled by robust demand for AI memory components. The company's profit soared to $5.42 billion.
CEO Sanjay Mehrotra highlighted that the burgeoning artificial intelligence data center capacity is driving substantial growth in high-performance memory. Micron projects its earnings per share to reach approximately $8.42 in the current quarter, far exceeding previous estimates. The company anticipates its business performance will continue to strengthen through fiscal year 2026.
Micron is a key supplier of high-bandwidth memory (HBM) chips, essential for AI model training, with customers like Nvidia and AMD. The industry faces an acute shortage of HBM chips, with the market value expected to grow from $35 billion this year to $100 billion by 2028, while supply remains constrained.
