(Reuters) -Micron Know-how forecast first-quarter income above Wall Road estimates on Wednesday, betting on sturdy demand for its excessive bandwidth reminiscence (HBM) chips utilized by the AI trade, sending the corporate’s shares up 10% after the bell.
The corporate is without doubt one of the solely three suppliers of HBM chips together with South Korea’s SK Hynix and Samsung (KS:), which has allowed the U.S. agency to money in on demand for semiconductors that assist energy generative AI know-how.
The AI increase has additionally helped Micron (NASDAQ:) cushion the hit from a reminiscence chip stock glut in PC and smartphone markets.
The corporate forecast income of $8.70 billion, plus or minus $200 million, for the primary quarter, in contrast with estimates of $8.28 billion, in line with LSEG information.
Micron’s outcomes sometimes set the tone for the chip sector because it reviews forward of friends and serves a broad consumer base spanning the PC, information middle and smartphone industries.
The corporate mentioned in June its HBM chips have been offered out for the 2024 and 2025 calendar years. The chips are used within the AI processors designed by Wall Road darling Nvidia (NASDAQ:).
Micron expects adjusted gross margin for the primary quarter to be 39.5%, plus or minus 1%. Analysts had anticipated an adjusted gross margin of 37.7%.
For the fourth quarter, the corporate’s income jumped 93% to $7.75 billion.
