Micron Technology improved the prognosis for revenue and arrived for the fourth quarter against the background of high demand for its memory chips. They are used in AI infrastructure of large companies. After the announcement of the Micron, about 3%increased.
Now the company expects quarterly revenue about 11.2 billion dollars (± 100 million), which is higher than the previous estimate of 10.7 billion (± 300 million). The forecast of adjusted gross profit also increased – to 44.5% (± 0.5%) against the previous 42% (± 1%).
Micron explains growth in improving prices, especially on DRAM chips, as well as high demand for HBM memory necessary for powerful data centers of data processing. Limited supplies of such chips allow the manufacturer to set higher prices.
Analysts note that this is a noticeable change for the industry, where before manufacturers had to work with lower margins.
Micron also predicts the adjusted profit per share in the 4th quarter at 2.85 dollars (± 0.07), which is higher than the previous estimate of $ 2.50 (± 0.15).
