Micron shares surge after upbeat first-quarter forecast due to AI demand for memory chips [Video]

Micron Technology shares surged roughly 14% in after-hours trading after the memory maker forecast higher-than-expected first-quarter revenue due to the thirst for its memory chips used in artificial intelligence computing.

Micron is one of the only three providers of high-bandwidth memory (HBM) chips along with South Korea’s SK Hynix and Samsung, which has allowed the U.S. firm to cash in on demand for semiconductors that help power generative AI technology.

HBM is a space-saving, power-efficient type of dynamic random access memory chip, or DRAM, crucial for AI-focused graphics processing units, that aid in processing vast amounts of data.

“Demand from data center customers continues to be strong and customer inventory levels are healthy,” Micron CEO Sanjay Mehrotra said on a conference call with analysts.

The company said in June its HBM chips, used in the AI processors designed by Wall Street darling Nvidia, were sold out for the 2024 and 2025 calendar …