Bloomberg Micron Technology Inc, the largest US memory chip manufacturer, has issued an optimistic forecast for the current quarter, indicating that rising demand and supply shortages are enabling the company to charge higher prices for its products. The company announced on Wednesday that fiscal second-quarter revenue is expected to range from US$18. 3 billion to US$19. 1 billion. This projection significantly exceeds analysts' average estimate of US$14. 4 billion for the period. Adjusted earnings per share are forecasted to be between US$8. 22 and US$8. 62, compared to a projected US$4. 71. Following the forecast release, Micron shares jumped about 10 percent in pre-market trading yesterday. The shares have already surged 168 percent this year, closing at US$225. 52 on Wednesday. The strong demand for artificial intelligence (AI) computing components is outpacing supply, benefiting companies like Micron. Micron’s CEO, Sanjay Mehrotra, described the company as “an essential AI enabler” in the statement, adding that they are investing to meet customers’ increasing needs for memory and storage. At the same time, shortages have occurred in lower-end memory used in PCs, partly due to the industry shifting production toward advanced technologies for AI data centers. Manish Bhatia, Micron’s executive vice president of operations, noted in an interview that “this is the most significant disconnect between demand and supply in terms of magnitude as well as time horizon that we’ve experienced in my 25 years in the industry. ” Based in Boise, Idaho, Micron has greatly benefited from AI demand because its high-bandwidth memory is crucial for the chips and systems powering AI model development. Bhatia stated that Micron is already sold out of these components for the next year. In the fiscal first quarter ending Nov. 27, sales increased 57 percent to US$13. 6 billion, while adjusted profit per share was US$4. 78. Analysts had anticipated revenue of US$13 billion and earnings per share of US$3. 95. During a conference call with analysts, Mehrotra remarked that memory shortages are expected to continue for some time. “Sustained and strong industry demand, along with supply constraints, are contributing to tight market conditions, ” he explained.

“We expect these conditions to persist beyond calendar 2026. ” The CEO expressed disappointment over the inability to fulfill all orders. “We are only able to meet about 50 percent to two-thirds of our demand from several key customers, ” he said. “Therefore, we remain highly focused on increasing supply and making the necessary investments. ” Part of these efforts involves increasing capital expenditures. The company now anticipates spending US$20 billion on capital investments in this fiscal year, up from the previous forecast of US$18 billion. Last fiscal year, it spent US$13. 8 billion on new plants and equipment.