The AI boom has given rise to dozens of new startups and created a new class of billionaires. It has also created a severe shortage of memory chips – a critical component for compute-hungry AI models – which some predict could last. by 2027.
of this era Ramageddon This is not just a corporate problem. As demand is increasing and supply is decreasing, prices are increasing and reaching consumers. Apple CEO Tim Cook had given this warning just a week ago price increases Because its products are indispensable.
But amid this Mad Max-esque battle for memory chips, some companies are coming forward. Micron, the largest U.S. computer-memory chip maker — with a market cap of $1.2 trillion — is one of them.
The company informed third quarter earnings After markets closed on Wednesday, shares rose more than 13% following the results. Revenue quadrupled to $41.45 billion compared with the same period a year earlier. Meanwhile, the company’s profits soared year-over-year from $1.88 billion to an incredible $28.2 billion.
The Idaho-based company also gave investors a positive outlook, forecasting fourth-quarter revenue between $49 billion and $51 billion.
Strong results come same week Micron made a deal Supplying AI lab Anthropique with memory and storage chips. Micron also disclosed that it participated in Anthropic’s Series H funding round, although it did not disclose how much it invested.
