(Reuters) -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.
Shares of the company gained about 5% in trading after the bell.
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 $3.75 billion for the quarter ended May 31, compared with estimates of $3.65 billion, according to IBES data from Refinitiv.
Micron forecast fourth-quarter revenue of $3.9 billion plus or minus $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 $1.9 billion, compared with a profit of $2.63 billion a year earlier.
(Reporting by Akash Sriram in Bengaluru; Editing by Sriraj Kalluvila)
