Micron beats revenue and profit forecasts — CNBC

In the United States, Micron Technology exceeded analysts’ expectations for quarterly revenue and adjusted earnings per share amid strong demand for artificial intelligence infrastructure. This was reported by CNBC Top News.

Financial results

Micron’s adjusted earnings per share came to $33.42, compared with the LSEG consensus forecast of $31.61. The company’s revenue reached $54.23 billion, while analysts had expected $51.07 billion.

Over the past year, Micron shares have risen by more than 500%. The company is benefiting from a global memory shortage driven by historically high demand for chips for AI models and workloads. The shortage has led to higher memory costs and prices for consumer electronics, including Apple’s iPad and MacBook.

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HBM production

Micron is the only producer of high-speed HBM memory in the United States. This type of memory consists of stacks of general-purpose dynamic random-access memory, or DRAM. Nvidia’s and AMD’s graphics processing units and central processing units require increasingly large amounts of HBM to handle AI workloads, while leading suppliers cannot fully meet demand.

Micron is investing $250 billion in the construction of two new production sites for HBM manufacturing. Construction of the largest of them began in January in Clay, New York, while the company’s first new plant in Boise, Idaho, is expected to begin operating next year. SK Hynix and Samsung are also significantly expanding HBM production in South Korea. Micron has the smallest HBM market share among the three companies, but its market capitalization has exceeded $1.2 trillion.