The semiconductor company’s notable rise in stock reflects solid growth driven by rising demand for AI infrastructure. This suggests the sector is well positioned to continue its expansion in the near future.
Micron Technology (MU) shares soared Thursday after the memory chip maker’s earnings and forecasts far exceeded expectations sdriving Nvidia (NVDA) and other semiconductor stocks higher.
Micron shares are up more than 18% in premarket trading, while partner Nvidia (NVDA) is up nearly 3%. Advanced Micro Devices (AMD), Broadcom (AVGO) and Taiwan Semiconductor Manufacturing Company (TSM) are also up, sending Nasdaq futures up nearly 1.5%.
The ‘robust demand for AI’
Nvidia, Micron and other chip companies have seen their revenues and stock prices soar due to increased demand for infrastructure to support artificial intelligence (AI).
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On Wednesday, Micron CEO Sanjay Mehrotra said the company’s fiscal fourth-quarter sales nearly doubled from a year earlier to $7.75 billion, driven by “robust demand for AI.”
Mehrotra also projected that sales will continue to grow, estimating that revenue for the current quarter could hit a record between $8.5 billion and $8.9 billion.
Source: Ambito
