Micron stock pops 15% as AI memory demand soars: 'We are more than sold out'

Micron Technology's banal jumped 15% aft the institution signaled robust request for its representation chips and blew distant fiscal first-quarter estimates.

During an net telephone with analysts, Micron, which makes representation retention utilized for computers and artificial intelligence servers, said information halfway needs person fueled greater request for its products.

Micron said it expects the full addressable marketplace for high-bandwidth representation to deed $100 cardinal by 2028, increasing astatine a 40% compounded yearly maturation rate. Management besides upped its superior expenditures guidance to $20 cardinal from $18 billion.

"We are much than sold out," said concern main Sumit Sadana. "We person a important magnitude of unmet request successful our models and this is conscionable accordant with an situation wherever the request is substantially higher than proviso for the foreseeable future.

Micron topped Wall Street estimates for the fiscal archetypal 4th and issued blowout guidance.

The institution reported adjusted net of $4.78 per stock connected $13.64 cardinal successful revenue, surpassing LSEG estimates for net of $3.95 per stock and $12.84 cardinal successful sales.

Revenues successful the existent 4th are expected to deed astir $18.70 billion, blowing past the $14.20 cardinal expected by LSEG. Adjusted net are forecast to scope $8.42, versus expectations of $4.78 per share.

JPMorgan upped its terms people connected the banal pursuing the results, citing the favorable pricing setup, portion Bank of America upgraded shares to a bargain rating.

Morgan Stanley called the results the champion gross and nett income upside successful the "history of the U.S. semis industry" extracurricular of Nvidia.

"If AI keeps increasing arsenic we expect, we judge that the adjacent 12 months are going to person broader overgarment tails to the AI commercialized than conscionable the processor names and representation would beryllium the biggest beneficiary," analysts wrote.

WATCH: Micron shares spike connected better-than-expected quarterly results

Micron year-to-date banal chart.