(Reuters) -Chipmaker Micron Expertise beat estimates for third-quarter income on Wednesday, pushed by a surge in demand for its reminiscence chips from the booming AI trade and improved pricing in different markets.
Nonetheless, shares of the Idaho-based agency fell 7.2% in prolonged buying and selling after it forecast fourth-quarter income largely consistent with expectations. Traders had despatched the refill 13% this month, forward of earnings, on optimism that Micron would profit from AI-driven demand.
The corporate forecast income of $7.6 billion, plus or minus $200 million, for the present quarter, in contrast with an estimate of $7.6 billion, in line with LSEG information.
Micron is without doubt one of the few suppliers of high-bandwidth reminiscence chips utilized in essentially the most superior AI techniques, permitting it to money in on surging demand for the semiconductors.
“We’re gaining share in high-margin merchandise like Excessive Bandwidth Reminiscence and our information heart SSD income hit a report excessive, demonstrating the energy of our AI product portfolio throughout DRAM and NAND,” Micron CEO Sanjay Mehrotra mentioned.
The corporate mentioned in March that its whole provide of HBM chips was bought out for 2024, whereas nearly all of the 2025 manufacturing had been allotted. The chips are used within the AI processors designed by Wall Road darling Nvidia.
Micron reported income of $6.81 billion for the third quarter, in contrast with an estimate of $6.67 billion, in line with LSEG information.
After Micron’s earnings, shares of Nvidia dropped 1.4%, Superior Micro Gadgets had been down 0.7%, and Intel slipped 0.4%.
(Reporting by Harshita Mary Varghese in Bengaluru and Max A. Cherney in San Francisco; Enhancing by Pooja Desai)
