September 26,2024

Micron Technology rose by almost 19% on Thursday after its high revenue guided investors on
the high chip demand for AI devices particularly Nvidia, AI processors. These HBM sales could
increase Micron’s market cap by more than $19 billion.
CEO Sanjay Mehrotra said that demand for HBM chips for artificial intelligence is enabling the
firm to address issues of inventory in personal computers market. It also posted better-than-
expected revenue for the last three months, which was the highest growth in a decade and an
upgraded outlook for the current quarter.
The good earnings helped lift other chip makers such as Nvidia Intel and Broadcom shares are up
more than 2%. Similar performance indicators increased more than by 3% during the week by
such players as AMD, Qualcomm and Arm Holdings while the Philadelphia Semiconductor
Index increased by 4%.
Thanks to this AI booster, Micron predicts an average gross margin of 39.5% for Q1 against
36.5% in the fourth quarter due to favorable HBM chip rates. Micron was able to deliver a good
number of which analysts said was helped by a previous fear that chip prices were weakening.