Micron profits quadruple amid memory chip crunch fueled by AI
Micron, the largest U.S. memory chip maker, reported quarterly profits of $28.2 billion, driven by AI-induced memory shortages, with revenue quadrupling to $41.45 billion.
The AI boom has caused a severe shortage of memory chips, a critical component for compute-intensive AI models, which some predict could persist through 2027. This "RAMageddon" is not just a corporate issue; rising prices are trickling down to consumers. Apple CEO Tim Cook warned a week ago that price increases for its products are unavoidable.
Amid this scramble for memory chips, some companies are thriving. Micron, the largest U.S. computer-memory chip maker with a market cap of $1.2 trillion, reported its third-quarter earnings after markets closed Wednesday, sending shares up more than 13%.
Revenue quadrupled year-over-year to $41.45 billion. Profit soared from $1.88 billion to $28.2 billion. The Idaho-based company forecast fourth-quarter revenue between $49 billion and $51 billion.
The strong results come the same week Micron signed a deal to supply AI lab Anthropic with memory and storage chips. Micron also disclosed it participated in Anthropic's Series H funding round, though the investment amount was not revealed.
