Micron Technology reported a 2.4% increase in third-quarter revenue, surpassing expectations by $80 million, thanks to increased demand for its memory chips from the growing AI industry and improved pricing in other markets. Despite this positive news, shares of the Idaho-based company fell 7.2% in extended trading after it provided a fourth-quarter revenue forecast that was mostly in line with expectations.
Micron’s CEO Sanjay Mehrotra expressed satisfaction with the company’s increasing market share in high-margin products like High Bandwidth Memory and record-high data center SSD revenue. The company has been capitalizing on the semiconductor market by producing high-bandwidth memory chips that are essential for advanced AI systems. In March, Micron announced that its supply of HBM chips was already sold out for 2024, with most of the 2025 production already allocated.
Following Micron’s positive earnings report, shares of Nvidia declined by 1.4%, Advanced Micro Devices by 0.7%, and Intel by 0.4%. This suggests that investors may be concerned about the potential impact of increased competition from other chipmakers on Micron’s business model. Nevertheless, Micron remains well positioned to continue benefiting from AI-driven demand as more companies invest in developing advanced AI systems that require high-performance memory chips.