The surge in demand driven by artificial intelligence workloads has produced a significant shortage of memory chips — a trend some forecasts expect to continue through 2027. The supply squeeze affects more than just data centers and AI startups; as prices rise, consumers may also feel the impact. Apple CEO Tim Cook recently warned that price increases for Apple products may be unavoidable.
Against this backdrop, certain chipmakers have gained disproportionately. Micron Technology, the largest U.S. computer-memory chip maker, posted strong gains in both its stock and financial results. Earlier in 2024 the company’s shares traded around $83 (with a market capitalization of roughly $91 billion); according to the report, the shares closed most recently at $1,048.51 and the company’s market value is cited as $1.2 trillion.
Quarterly results
Micron released its third-quarter earnings after markets closed on Wednesday, and the announcement sent the stock up more than 13%. Revenue for the quarter quadrupled year-over-year to $41.45 billion, while profit rose from $1.88 billion to $28.2 billion compared with the same period a year earlier.
The company also provided a favorable outlook, forecasting fourth-quarter revenue between $49 billion and $51 billion.
Ties to the AI sector
In the same week as the earnings release, Micron disclosed a deal to supply memory and storage chips to AI lab Anthropic. Micron said it participated in Anthropic’s Series H funding round as well, but did not reveal the size of its investment.
Overall, rising AI-driven demand and constrained supply have helped drive Micron’s recent surge in revenue, profitability, and market valuation.
