US chipmaker Micron Technology briefly became more valuable than Meta and Tesla after its shares surged on the back of strong earnings and booming demand for artificial intelligence (AI) memory chips.
The company’s stock jumped 18.4 per cent, pushing its market value to $1.398 trillion. During the rally, Micron overtook Meta, valued at $1.392 trillion, and briefly moved ahead of Tesla before market values changed later in the trading session.
The sharp rise came after Micron reported better-than-expected quarterly results and issued a strong revenue forecast. The company said demand for its advanced memory chips, which are used in AI servers and data centres, continues to grow rapidly as technology companies expand their AI infrastructure.
Micron also revealed that customers have signed $22 billion worth of long-term agreements to secure future supplies of its high-bandwidth memory (HBM) chips. These chips are essential for training and running advanced AI models, making them a key component of the fast-growing AI industry.
The company reported a 346 per cent year-on-year jump in revenue, reflecting the strong demand for AI-related products. Investors welcomed the results, seeing them as a sign that spending on AI infrastructure remains strong despite global economic uncertainties.
While companies like Nvidia have dominated the AI hardware market, Micron is becoming increasingly important because AI systems require large amounts of high-speed memory to process data efficiently. As more businesses invest in AI, demand for memory chips is expected to remain strong.
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