By Anhata Rooprai
Sept 30 (Reuters) - Micron Technology forecast quarterly revenue above estimates on Wednesday, signaling it expects the AI-driven memory chip boom to continue powering its growth.
Shares of the Boise, Idaho-based company rose over 1% in extended trading. The stock has more than tripled so far this year.
The generative AI boom has made high-bandwidth memory essential for data centers, benefiting companies such as Micron, a key supplier to Nvidia, whose pricey processors dominate advanced
computing workflows.
The company expects first-quarter revenue of $61.5 billion, plus or minus $1.5 billion, compared with analysts' average estimate of $57.02 billion, according to data compiled by LSEG. Adjusted profit is expected to be $38.15 per share in the first quarter, plus or minus $1, above estimates of $35.40.
As the only major US-based HBM chipmaker, Micron has seen orders far exceed capacity, while the AI memory boom has tightened conventional chip supplies and driven prices higher across the broader semiconductor market.
To meet demand, Micron is expanding aggressively and has lifted planned US investments to over $250 billion through 2035, as Amazon, Alphabet and other tech giants are set to spend more than $730 billion on AI infrastructure this year.
"Micron's complete blowout earnings and forecast should put the nail in the coffin of the ongoing doubters about the resiliency of the AI buildout," said Bob O'Donnell, chief analyst at TECHnalysis Research.
Fourth-quarter revenue more than quadrupled to $54.23 billion, beating estimates of $51.07 billion. Adjusted profit came in at $33.42 per share, exceeding estimates of $31.61.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Maju Samuel)
