Computer memory chip maker Micron Technology (MU) reported stellar third-quarter results on Wednesday, lifting the entire AI memory sector, AI-related stocks and even giving crypto a slight boost.
Bitcoin BTC$61,617.45 rose back above $60,000 after markets closed, but AI bullish sentiment will eventually pull more liquidity out of crypto.
Shares of Micron jumped 16% in premarket trading Thursday after the memory chip maker’s third-quarter guidance beat Wall Street expectations. Third-quarter revenue was $41.5 billion, compared to an estimated $35.7 billion, while earnings per share (EPS) came in at $25.11, compared to an expected $20.49.
Memory chips have become the backbone of AI infrastructure, particularly high-bandwidth memory (HBM), essential for training and running large AI models. CEO Sanjay Mehrotra told analysts there was “no visibility” as to when supply would catch up with demand, with the shortage expected to persist well beyond 2027.
The company also issued strong fourth-quarter guidance, projecting revenue of about $50 billion, well above Wall Street’s expectations of $43.2 billion.
The AI boom has weighed heavily on the crypto market this year, with bitcoin now more than 50% below its October all-time high, trading at the $60,000 level.