Micron Technology is a US manufacturer of computer memory and data storage products, including dynamic random-access memory, flash memory, and USB flash.
Micron’s headquarters are in Boise, America. It is a publicly-traded company on the Nasdaq stock exchange under the symbol MU and is also a component of the Nasdaq-100 and S&P 500 indexes. Micron declined in late trading after its forecast disappointed investors seeking a bigger payoff from the artificial intelligence (AI) manias.
Micron expects sales between $7.4 billion and $7.8 billion for the last quarter. However, some analysts say sales will be over $8 billion. Micron has predicted a profit of about $1.08 per share, higher than the expected $1.02 per share.
Investors previously hoped Micron would be very profitable because of the huge demand for AI. As a result, Micron’s stock increased 67%. However, Micron’s shares dropped by about 7% in after-hours trading.
However, Micron’s income increased by 82% in the third quarter. Micron reported a profit of 62 cents per share, more than expected. Micron sells an integral part of AI hardware called high-bandwidth memory. This memory works with processors from Nvidia to process data quickly, which helps develop AI models more efficiently.
Crating these HBM chips is a difficult task, which will raise prices. Micron also hopes this will improve smartphone and personal computer sales. Micron’s CEO, Mr. Sanjay Mehrotra, has said, “2024 will be a recovery year for the memory chip industry, with record sales in 2025.”
Micron, a key player in the memory chip industry, competes with Samsung Electronics in selling short-term memory chips for computers and phones. However, Micron’s unique selling point lies in its production of high-bandwidth memory chips, a crucial component in AI hardware. This sets Micron apart in the market, as it also makes flash memory for long-term storage.
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