Micron Technology Surges 10% After Forecasting Revenue Above Wall Street Estimates
Micron Technology, a key player in the high bandwidth memory (HBM) chip market, has forecasted first-quarter revenue above Wall Street estimates. The company's strong position in the HBM chip market, along with the growing demand for semiconductors in the AI industry, has propelled its shares up by 10% after the announcement.
As one of the top three providers of HBM chips, Micron has been able to capitalize on the increasing demand for chips that power generative AI technology. The AI boom has also helped the company offset the impact of a memory chip inventory glut in the PC and smartphone markets.
Micron's forecasted revenue of $8.70 billion for the first quarter surpasses estimates of $8.28 billion, showing the company's continued growth and success in the market. Additionally, the company expects an adjusted gross margin of 39.5%, higher than analysts' expectations of 37.7%.
In the fourth quarter, Micron reported a revenue jump of 93% to $7.75 billion, further highlighting its strong performance in the industry. The company's HBM chips are in high demand, with sales already sold out for the 2024 and 2025 calendar years.
Overall, Micron's positive forecast and strong financial results indicate a promising future for the company in the semiconductor market. Investors and industry analysts can look to Micron's performance as a key indicator of the chip sector's overall health and growth potential.