Micron Shares Climb on Soaring Demand for AI Memory Chips
- tech360.tv
- 1 day ago
- 2 min read
Micron Technology shares rose 2% in premarket trading Thursday after the company issued a strong fourth-quarter revenue forecast, driven by surging demand for memory chips used in AI data centres.
Sales of Micron’s high-bandwidth memory (HBM) chips jumped nearly 50% in the third quarter compared to the previous quarter. The company is one of the few global suppliers of HBM chips, alongside South Korea’s SK Hynix and Samsung.
Micron is currently the only company shipping HBM3E chips at scale, according to Michael Ashley Schulman, partner at Running Point Capital Advisors.
The chipmaker said it will continue investing in HBM technology to meet growing demand from major AI chipmakers Nvidia and Advanced Micro Devices, both of which are Micron customers.
J.P. Morgan projected that Micron’s HBM chip sales could reach an annualised revenue run rate of USD 8 billion within the next one to two quarters.
Micron Chief Business Officer Sumit Sadana said customer pull-ins related to tariffs in the third quarter were modest. Morgan Stanley analysts noted that while tariffs are a factor, they are not a major driver of Micron’s recent performance.
Following the earnings report, at least 10 brokerages raised their price targets for Micron stock.
Shares of AMD, Nvidia and Marvell Technology also rose between 1% and 3% in premarket trading.
So far this year, Micron shares have gained 51.2%, while AMD and Nvidia have risen about 19% and 15%, respectively.
Micron’s 12-month forward price-to-earnings ratio stands at 11.85, compared to SK Hynix’s 6.48 and Samsung’s 11.57.
Micron shares rose 2% on strong AI chip demand
HBM chip sales surged nearly 50% in Q3
Company is shipping HBM3E chips at scale
Source: REUTERS
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