Shares of Micron surged more than 12 per cent on Wednesday after the US chipmaker swung to a profit for the first time since 2022 and shared a rosy outlook for the current quarter, crediting strong demand for artificial intelligence-related products.
Micron projected $6.6bn in revenue for the current quarter, about $600mn higher than analysts had expected.
Chief executive Sanjay Mehrotra said the company projected strong results for the rest of the year driven by the “multi-year opportunity enabled by AI”.
The Idaho-based company surprised analysts by posting a profit for the first time in 18 months, earning $793mn in net income for the quarter to the end of February. It posted $5.8bn in revenue, beating consensus estimates of $5.3bn, according to S&P Capital IQ.