Memory Chip Shortage Pays Off: Micron's Revenue Quadruples
Micron, the largest U.S. memory chip maker, reported massive Q3 earnings driven by AI demand, with revenue quadrupling to $41.45 billion, while warning of price hikes for consumers.
The AI boom has created not only startups and billionaires but also a severe shortage of memory chips, a critical component for compute-heavy AI models. This shortage is expected to persist through 2027, driving up prices and affecting consumers. Apple CEO Tim Cook recently warned of unavoidable price increases for its products.
However, some companies are thriving in this environment. Micron, the largest U.S. maker of computer memory chips with a market cap of $1.2 trillion, reported its fiscal third-quarter earnings on Wednesday. Shares surged over 13% after the announcement. Revenue soared to $41.45 billion, quadruple the amount from the same quarter last year, while profit jumped from $1.88 billion to $28.2 billion year-over-year. The Idaho-based company also provided a strong outlook, forecasting fourth-quarter revenue between $49 billion and $51 billion.
This week, Micron also signed a deal to supply memory and storage chips to AI lab Anthropic. Additionally, Micron participated in Anthropic's Series H funding round, though it did not disclose the investment amount.
