by By Harshita Mary Varghese
(Reuters) -Micron technology shares rose around 14% in trade after the hours after the memory maker that was higher than the expected income from the first quarter because of the thirst for his memory chips used in artificial intelligence computing.
Micron is one of the few three providers of HBM chips with high bandwidth (HBM), together with SK Hynix and Samsung in South Korea, so that the American company can be redeemed to semiconductors on request that help improve generative AI technology.
HBM is a space-saving, power-efficient type of dynamic random access memory chip, or dram, crucial for AI-oriented graphic processing units that help process enormous amounts of data.
“The demand from data centers customers remains strong and the customer inventory levels are healthy,” said Sanjay Mehrotra, CEO of Micron, at a conference call with analysts.
The company said in June that his HBM chips, used in the AI processors designed by Wall Street Darling Nvidia, were sold out for the calendar years of 2024 and 2025 with determined prices.
Micron expects record income of approximately $ 8.7 billion, plus or minus or minus $ 200 million in the first quarter of record income and predicts a jump in the gross margin to around 39.5% for the same period.
Analysts had expected a turnover of $ 8.28 billion for the first quarter and the adapted gross margin of 37.7%, according to LSEG data.
The AI Boom has also helped with the cushion of the hit of a memory chip inventory -glut on PC and smartphone markets.
Personal computers infused with AI technologies are expected to have more memory chips, so that companies such as Micron are helped.
AI PCs may have more than 30% more dram and Microsoft’s push to let users change Windows 11 from an older version, especially for commercial PCs in 2025, Summit Insights Senior research analyst Kingai Chan said.
The results of Micron usually set the tone for the chip sector, because it reports before colleagues and serves a wide customer base about the PC, data center and smartphone industry.
“HBM, high capacity memory and flash storage of data center, each of these three product categories will be several billions of dollars in income in 2025,” said Micron’s Chief Business Officer Sumit Sadana.
For the first quarter, the company predicts a customized profit of $ 1.74 per share, plus or minus 8 cents, compared to estimates of analysts of $ 1.65.
(Reporting by Harshita Mary Varghese and Akash Sriram in Bengaluru and Max A. Cherney in San Francisco; Edit by Sounak Dasgupta and Jacqueline Wong)
