By Zaheer Kachwala and Anhata Rooprai
June 24 (Reuters) - Micron forecast quarterly profit and revenue well above expectations on Wednesday and said its customers had committed $22 billion to lock in supplies of memory chips, sending its shares surging 12% in after-hours trading.
The forecast - and third-quarter results that beat Wall Street estimates - underscore how AI-driven shortages are forcing Micron's large-scale data center customers to fund capacity, reshaping the memory market.
Micron, a key supplier for Nvidia's AI processors, has benefited from the shortage.
The company, the only U.S.-based manufacturer of high bandwidth memory chips used alongside Nvidia's AI processors, has seen demand for these chips far outstrip its production capacity, allowing the company and rivals SK Hynix and Samsung Electronics to charge a premium for their products.
June 24 (Reuters) - Micron forecast quarterly profit and revenue well above expectations on Wednesday and said its customers had committed $22 billion to lock in supplies of memory chips, sending its shares surging 12% in after-hours trading.
The forecast - and third-quarter results that beat Wall Street estimates - underscore how AI-driven shortages are forcing Micron's large-scale data center customers to fund capacity, reshaping the memory market.
Micron, a key supplier for Nvidia's AI processors, has benefited from the shortage.
The company, the only U.S.-based manufacturer of high bandwidth memory chips used alongside Nvidia's AI processors, has seen demand for these chips far outstrip its production capacity, allowing the company and rivals SK Hynix and Samsung Electronics to charge a premium for their products.
4 months ago
