(Reuters) – Memory chipmaker Micron Technology forecast quarterly revenue above market estimates on Wednesday as memory demand and pricing begins to recover after one of the most significant downturns in years.
The company’s shares rose nearly 4% in extended trading.
Analysts expect demand for flash storage and dynamic random access memory (DRAM) to continue to improve next year. Memory prices, which slumped this year, have improved in recent weeks, which will help the company deliver higher profitability.
Micron forecast revenue of $5.3 billion, plus or minus $200 million, for the second quarter, compared with estimates of $5.03 billion, according to LSEG data.
Businesses have begun to incorporate generative artificial intelligence into various products and services that has boosted demand for Micron’s high-bandwidth memory chips, which are necessary to train large language models (LLMs) that form the foundation of AI tech.
On an adjusted basis, Micron expects a loss of 28 cents per share, plus or minus 7 cents, for the second quarter, compared with estimates of a loss of 62 cents per share.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shounak Dasgupta)
