Micron forecasts strong quarterly results on soaring memory chip demand

Micron forecast quarterly profit and revenue well above expectations on Wednesday and said its customers had committed $22 billion to lock in future supply of memory chips, sending its shares surging 12 percent in after-hours trading. The forecast — and third-quarter results that beat Wall Street estimates — underscore how AI-driven shortages are forcing Micron's large-scale data center customers and other chip buyers to fund capacity, moves that are reshaping the memory market. Micron, which is the only U.S.-based manufacturer of high-end memory chips used alongside Nvidia's AI processors, has seen demand for these HBM chips far outstrip its production capacity. "We expect tight conditions to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints," Micron CEO Sanjay Mehrotra said in the company's prepared remarks. Micron's stock has surged more than threefold this year, despite a 13 percent plunge on Tuesday as part of a broader selloff. The chipmaker also outlined a business model shift aimed at making demand less