September 27, 2024 /SemiMedia/ — Micron expects first-quarter revenue to reach around $8.7 billion, exceeding market estimates, driven by strong demand for high-bandwidth memory (HBM) chips used in artificial intelligence (AI) applications.

As one of only three global suppliers of HBM chips—alongside SK Hynix and Samsung—Micron is benefiting from the growing demand for semiconductors that power generative AI technology. HBM chips are critical for AI computing, presenting a key growth opportunity for the company.

CEO Sanjay Mehrotra said during a conference call that demand from data center customers remains strong, with healthy inventory levels. Micron had previously indicated that its HBM chip sales for 2024 and 2025 were fully booked, with pricing already set.

The AI boom has also helped Micron navigate excess memory chip inventories in the PC and smartphone markets. The integration of AI technology into PCs is expected to drive higher memory demand, benefiting companies like Micron.

The company expects its gross margin for the first quarter to rise to about 39.5%. Chief Business Officer Sumit Sadana added that HBM, high-capacity memory, and data center flash products will each generate billions in revenue by 2025.