Micron Technology, a chipmaker, exceeded third-quarter revenue expectations on Wednesday. The company experienced a surge in demand for its memory chips from the flourishing AI industry and witnessed improved pricing in other markets. Despite the positive results, Micron's shares fell by 7. 2% during extended trading when it disclosed its forecast for fourth-quarter revenue, which closely aligned with expectations. Prior to this announcement, investors had driven the stock up by 13% this month, anticipating that Micron would benefit from the increasing demand driven by AI. For the current quarter, the company predicted a revenue range of $7. 6 billion, with a variance of plus or minus $200 million. This aligns with the estimate of $7. 6 billion according to LSEG data. Micron stands as one of the few suppliers of high-bandwidth memory chips utilized in cutting-edge AI systems, enabling it to capitalize on the surging demand for semiconductors. Micron CEO, Sanjay Mehrotra, highlighted the success of the company's AI product portfolio in DRAM and NAND, noting that they are gaining shares in high-margin products like High Bandwidth Memory.

In fact, he revealed that the company's data center SSD revenue has reached a record high. Previously, in March, Micron announced that all of its HBM chips for 2024 had been sold out and that a significant portion of the 2025 production had already been allocated. These chips are integral to the AI processors designed by the well-regarded Nvidia. According to LSEG data, Micron reported revenue of $6. 81 billion for the third quarter, surpassing the estimated $6. 67 billion. Following Micron's earnings report, the shares of Nvidia declined by 1. 4%, Advanced Micro Devices decreased by 0. 7%, and Intel slipped by 0. 4%. (Reporting by Harshita Mary Varghese in Bengaluru and Max A. Cherney in San Francisco; Editing by Pooja Desai)