Micron's Earnings Surge with AI Demand Drive

Micron Technology reported its fourth-quarter earnings, astonishing investors with a significant revenue beat amidst a burgeoning demand for high bandwidth memory (HBM) linked to AI applications. The company's stock soared about 11% in after-hours trading following the impressive figures revealing earnings surpassing expectations. Senior portfolio manager Dan Morgan noted that while skepticism had surrounded Micron's core markets—data centers, smartphones, and PCs—the AI layer appears to be providing a boost as the company emerges from a down cycle. Morgan emphasized the importance of HBM in their performance, particularly its partnership with Nvidia's latest AI chips. Micron anticipates a demand for the HBM RAM market to surpass $25 billion in 2025, and reports indicate that their HBM supply for this year and next is sold out. While the primary markets are still stabilizing, these developments pointed towards a gradual recovery with the prospect of improved pricing and a pickup in PC unit growth. Overall, Micron's results stand as a testament to the company’s resilience and innovation in adapting to AI dynamics in an evolving technology landscape.