Micron Technology beat estimates for third-quarter results on Wednesday, powered by demand for its memory chips from the rapidly-growing artificial intelligence sector and an easing supply glut in its traditional PC and smartphone markets.
Shares of the company rose more than 2 percent in trading after the bell. They have gained 34 percent this year on bets that the use of the company’s memory chips in generative AI services-related servers will skyrocket following the popularity of ChatGPT, OpenAI’s chatbot.
“The recent acceleration in the adoption of generative AI is driving higher-than-expected industry demand for memory and storage for AI servers, while traditional server demand for mainstream data center applications continues to be lackluster,” CEO Sanjay Mehrotra said….