Micron Technology (MU, Financial), the largest computer storage chip manufacturer in the U.S., has issued a positive earnings forecast for the current quarter, driven by rising demand for artificial intelligence (AI) devices. The company anticipates fourth-quarter revenue to be between $10.4 billion and $11 billion, surpassing analysts' average estimate of $9.89 billion. Adjusted earnings per share are expected to be approximately $2.50, compared to the analysts' forecast of $2.03.
The company has observed increased demand for its high-bandwidth memory components, which are essential for machines that develop and operate AI tools. Micron expects this market to continue expanding as AI software becomes more complex, requiring additional memory.
Year-to-date, Micron's stock has risen by 51%. Following the optimistic earnings announcement, its shares climbed over 6% in after-hours trading.
