The memory chip crunch is paying off for this U.S. company

In Brief

The AI roar has fueled dozens of caller startups and minted a caller people of billionaires. It has besides produced a superior shortage of representation chips — a captious constituent for compute-hungry AI models — which immoderate foretell could persist through 2027.

This epoch of RAMageddon isn’t conscionable a firm problem. As request spikes and squeezes supply, prices are rising and trickling down to consumers. Apple CEO Tim Cook warned conscionable a week agone that price increases for its products are unavoidable.

But amid this Mad Max-esque combat for representation chips, immoderate companies are coming retired ahead. Micron, the largest U.S. computer-memory spot shaper — with a marketplace headdress of $1.2 trillion — is 1 of them.

The institution reported third-quarter earnings aft markets closed Wednesday, and the results sent shares soaring much than 13%. Revenue quadrupled to $41.45 cardinal compared with the aforesaid play a twelvemonth ago. The company’s profit, meanwhile, roseate from $1.88 cardinal to an unthinkable $28.2 cardinal year-over-year.

The Idaho-based institution besides gave investors a affirmative outlook, forecasting fourth-quarter gross of betwixt $49 cardinal and $51 billion.

The beardown results get the aforesaid week Micron inked a deal to proviso AI laboratory Anthropic with representation and retention chips. Micron besides disclosed that it participated successful Anthropic’s Series H backing round, though it didn’t disclose however overmuch it invested.

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