Micron Technology: Optimistic Outlook Thanks to Artificial Intelligence

Micron Technology has provided a forecast for first-quarter revenue that exceeds market estimates. The company is counting on increasing demand for hardware in the field of artificial intelligence to boost sales of its advanced memory modules. This led to a 4% rise in the stock of the memory chip manufacturer in after-hours trading. The race to develop complex AI models and expand related data center infrastructure has fueled demand for Micron's high-speed memory (HBM). Micron supplies, among others, Nvidia, a leading provider of AI chips, which holds a dominant position in the valuable AI accelerator market. The competition among the world's leading memory suppliers—including Micron, SK Hynix, and Samsung—focuses heavily on becoming an important supplier for Nvidia. This position is crucial as Nvidia, being the world's highest-valued company, has a significant influence on the market. For the first quarter, Micron forecasts revenue of $12.50 billion, with a potential deviation of $300 million. This is above analysts' average estimated expectation of $11.94 billion, based on data from LSEG. The company reported fourth-quarter revenue of $11.32 billion, surpassing the forecast of $11.22 billion.