(Reuters) -Micron Technology forecast third-quarter revenue above Wall Street estimates on Thursday, signaling strong demand for its high-bandwidth memory (HBM) chips used by the AI industry.
The company’s shares rose nearly 5% in after-hours trading. The stock had risen 9% this month, ahead of earnings, on investor optimism that Micron would benefit from AI-driven demand.
A surge in demand for artificial intelligence has significantly boosted the demand for Micron’s high-bandwidth memory (HBM) chips.
These chips, essential for advanced AI systems, are a type of dynamic random access memory or DRAM standard first produced in 2013, where chips are vertically stacked to save space and reduce power consumption.
The company said it expects revenue of $8.80 billion, plus or minus $200 million for the quarter, compared with an estimate of $8.5 billion, according to data compiled by LSEG.
(Reporting by Juby Babu in Mexico City; Editing by Vijay Kishore)
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