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Key Takeaways
- Micron Technology shares surged Thursday on its strong outlook, leading Nvidia and other semiconductor stocks higher.
- Nvidia, its partner Micron, and other chip companies have seen their revenue and stock prices climb amid a boom in demand for infrastructure to support AI.
- Micron CEO Sanjay Mehrotra said Wednesday the company’s sales have nearly doubled from a year ago, with record-high revenue expected in the current quarter.
Micron Technology (MU) shares surged Thursday after the memory chip maker’s revenue and outlook blew past expectations, leading Nvidia (NVDA) and other semiconductor stocks higher.
Shares of Micron were up over 16% in pre-market trading, while shares of partner Nvidia (NVDA) gained close to 3%. Advanced Micro Devices (AMD), Broadcom (AVGO), and Taiwan Semiconductor Manufacturing Company (TSM) also rose, pulling Nasdaq futures up close to 1.5%.
Micron’s Sales Surge on ‘Robust AI Demand’
Nvidia, Micron, and other chip companies have seen their revenue and stock prices climb amid a boom in demand for infrastructure to support artificial intelligence (AI).
Micron CEO Sanjay Mehrotra said Wednesday the company’s fiscal fourth-quarter sales nearly doubled from a year ago to $7.75 billion, driven by “robust AI demand.”
Mehrotra also said the company’s sales are expected to continue growing, projecting current-quarter revenue could reach a record high between $8.5 billion to $8.9 billion.