Micron hits record high as AI demand powers strong forecast  

  • Memory chipmaker Micron Technology surged to a record high on Thursday after its strong revenue forecast fanned optimism.
  • The stock was last up 15%, lifting the broader Philadelphia chip index 3% higher.
  • Soaring demand for AI hardware would take the Nvidia supplier to new peaks.

Micron Technology shares surged Thursday, reaching US$113.50, an all-time high, based on data back to 1984, aided by a faster-than-expected recovery in the memory-chip market.


Micron’s high-bandwidth memory (HBM) chips, which refer to ultrafast semiconductors used in the development of AI applications, were sold out for 2024.  

Micron, one of the two suppliers of HBM chips to Nvidia along with South Korea’s SK Hynix, was set to add nearly US$16 billion to its market value, based on its share price of US$110.92.

On Wednesday ahead of results, Micron was trading at about 24 times its 12 month forward earnings estimates, compared with 14.53 for smaller rival Western Digital.

Micron’s shares have surged more than 60% in the past 12 months, buoyed by investor confidence that the company will grow its share of the high-margin HBM market this year and the next.

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Growing demand for artificial intelligence

Micron CEO Sanjay Mehrotra said in a statement accompanying the quarterly results, “We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI.”

He also mentioned in prepared remarks that AI server demand has tightened demand-supply dynamics, which has helped Micron benefit from robust price increases in all memory and storage end markets. He said he anticipates pricing levels to increase further throughout this year, adding that the company expects record revenue and much-improved profitability in fiscal 2025.


Jennifer Yu

Jennifer Yu is an intern reporter at BTW Media covering artificial intelligence and products. She graduated from The University of Hong Kong. Send tips to j.yu@btw.media.

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