Micron Soars on Strong AI-Driven Demand and Upbeat Forecast

Micron Technology Inc., exceeding analyst expectations, projected strong fiscal first-quarter revenue and profit driven by high demand for its memory chips used in AI technology. The company`s positive outlook is attributed to a surge in AI spending, particularly for high-bandwidth memory, which has become a lucrative product for Micron. This demand has allowed Micron to increase prices, secure long-term contracts, and sell out its high-bandwidth memory supply through 2025. Although Micron faced a previous decline in demand for memory chips in personal computers and smartphones, the company reported that device shipments are rising again, further bolstering its positive outlook. Micron`s success is partly due to its early adoption of advanced memory technology, giving it a competitive advantage in meeting the growing demand for AI-related memory chips.