Dec 17 (Reuters) – Micron Technology forecast second-quarter revenue above Wall Street estimates on Wednesday, betting on soaring demand and strong pricing for its high-bandwidth memory chips used in artificial intelligence hardware.
Shares of the Boise, Idaho-based company rose 4% in extended trading.
Micron’s chips are fundamental components in everything from data center servers and personal computers to smartphones and vehicles.
The company is seeing strong demand from data centers, fueled by increased spending by large-scale cloud service providers that offer hardware and cloud capacity as services.
The company projected revenue for the current quarter to be $18.70 billion, plus or minus $400 million, compared with analysts’ average estimate of $14.20 billion, according to data compiled by LSEG.
(Reporting by Juby Babu in Mexico City; Editing by Shinjini Ganguli)
