ChatGPT, Gemini and other AI technologies drive business: Thanks to a growing need for powerful memory for artificial intelligence, Micron nearly doubled its quarterly revenue.
On that basis, the semiconductor maker gave a surprisingly optimistic outlook for the current quarter on Wednesday. The company expects revenue of $8.7 billion, plus or minus $200 million. Analysts had expected only $8.28 billion.
Over a billion dollars in profit
In the past quarter, revenue rose 93 percent to $7.75 billion, also beating market expectations. This is the strongest growth in more than a decade. Net income was a surprisingly high $1.342 billion. Micron shares subsequently rose by more than 13 percent in after-hours trading on Wall Street.
Micron owes its strong growth to its HBM (High Bandwidth Memory) memory chips. These can store and retrieve a lot of data in a short time. They are therefore in high demand for computationally intensive AI applications where large amounts of data need to be processed simultaneously. The most powerful generation currently available is called “12-Layer HBM3E”. According to previous information, HBM storage production for 2024 and 2025 is already sold out.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
