Micron Technology shares climbed more than 16% in premarket trading on Thursday after the memory chip manufacturer reported a dramatic expansion in third-quarter revenue, driven by surging demand for high-bandwidth memory in artificial intelligence applications.
The company reported revenue of $41.46 billion for the quarter, a figure that more than quadrupled the $9.3 billion recorded in the same period a year earlier.
The blockbuster results followed a strong after-hours session on Wednesday, where shares had already jumped approximately 10% to 12% after the company issued guidance that significantly exceeded analyst expectations.
The blockbuster results followed a strong after-hours session on Wednesday, where shares had already jumped approximately 10% to 12% after the company issued guidance that significantly exceeded analyst expectations.
The revenue surge highlights the intensifying competition among cloud providers and AI developers to secure advanced memory components.
As data center architectures evolve to support large language models and generative AI workloads, the demand for specialized memory solutions has outpaced supply, allowing manufacturers like Micron to command premium pricing and expand margins.
Investors are now focused on whether this momentum can be sustained through the next fiscal year.