Micron Technology beat analysts' estimates for third-quarter revenue on Wednesday, driven by demand for its memory chips from the fast-growing artificial intelligence sector.
Soaring demand from the generative AI sector, which has garnered heightened investor attention following the viral popularity of OpenAI's ChatGPT, has helped prop up sales amid weakness in Micron's traditional smartphone and PC markets.
The proliferation of generative AI will likely fuel a jump in demand for data to feed large language models and could boost the need for more storage chips, analysts have said.
The company reported revenue of US$3.75 billion for the quarter ended May 31, compared with estimates of US$3.65 billion, according to IBES data from Refinitiv.
Micron forecast fourth-quarter revenue of US$3.9 billion plus or minus US$200 million for the quarter ending Aug. 31, largely in line with expectations.
The company, which makes DRAM and NAND flash memory chips, reported a net loss of US$1.9 billion, compared with a profit of US$2.63 billion a year earlier.
Shares of the company gained about 5 per cent in trading after the bell.
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