Micron reports record profits as memory chip shortage continues

In short: Micron said a shortage of memory chips, driven in part by AI demand, helped push its quarterly revenue and profit sharply higher.

What's going on

Micron, the largest U.S. maker of computer memory chips, reported record results for its third quarter. Memory chips are the parts that help computers store and quickly access information, like a desk where you keep papers you are actively using.

Micron said revenue quadrupled to $41.45 billion compared with the same quarter a year earlier. Profit jumped from $1.88 billion to $28.2 billion. After the company reported results, Micron shares rose more than 13%.

The company also told investors it expects even more revenue next quarter, forecasting between $49 billion and $51 billion. The update comes as many companies are struggling to get enough memory chips because AI systems need a lot of computing power and fast access to data.

Micron also announced a new agreement to supply AI lab Anthropic with memory and storage chips. Storage chips are like a filing cabinet for long-term data (photos, files, and saved information). Micron said it also invested in Anthropic’s Series H funding round, but it did not say how much.

What to watch

Industry watchers have warned that the memory shortage could last through 2027. If that happens, prices for devices that rely on these chips could keep rising, and companies like Micron may continue to benefit.

Source: TechCrunch AI