Micron Technology Inc, the largest US memorychip maker, on Wednesday offered a surprisingly strong revenue forecast for the current quarter, buoyed by demand for artificial intelligence (AI) hardware.
Fiscal third-quarter revenue would be US$6.4 billion to US$6.8 billion, the company said in a statement. That compares with an average analyst estimate of US$5.99 billion.
Micron would have earnings per share of about US$0.45, minus certain items. Analysts projected US$0.24.
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Micron and its rivals are emerging from one of the worst slumps the memorychip industry has suffered, triggered by weak demand for PCs and smartphones, but executives are optimistic about the future as the booming market for AI equipment helps chipmakers return to growth and profitability.
“We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI,” Micron chief executive officer Sanjay Mehrotra said in the statement.
Mehrotra has promised investors that this year would mark a rebound for the industry and next year would see record sales levels, but Micron would need to make enough ultrafast memory, which works with Nvidia Corp chips to help data center operators develop AI software.
AI-related systems use high-bandwidth memory (HBM). That type of chip is new and less of a commodity. That means Micron can charge a much higher price.
Micron got its first revenue from a form of this memory known as HBM3E in its most recent quarter. The semiconductors are part of Nvidia graphics chip-based AI accelerators, the company said.
The company expects “several hundred million” dollars of revenue from HBM products this year. The majority of its production of such chips is sold out for next year, it said.
Nvidia chief executive officer Jensen Huang (黃仁勳) on Monday said that HBM was more than just a memory upgrade — it is a technical marvel that is vital to AI systems. He mentioned Micron as a leader in bringing the new technology to market.
In the second quarter, which ended on Feb. 29, Micron’s revenue rose 58 percent to US$5.82 billion. The Boise, Idaho-based firm had earnings per share of US$0.42, excluding certain items. That compares with estimated sales of US$5.35 billion and a projected loss per share of US$0.24.
“Micron has returned to profitability and delivered positive operating margin a quarter ahead of expectation,” Mehrotra said on a conference call with analysts.
The company said it is maintaining its budget for new plants and equipment for this year at US$7.5 billion to US$8 billion.
It is to proceed with projects in China, Japan and India, while proposed US expansions “require Micron to receive the combination of sufficient CHIPS and Science Act grants, investment tax credits and local incentives to address the cost difference” compared with overseas expansion, Mehrotra said.
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