Pc reminiscence chipmaker Micron Expertise (MU) delivered blowout Q3 earnings on Wednesday, lifting the whole AI reminiscence sector, AI-related shares and even giving crypto a slight enhance.
Bitcoin climbed again above $60,000 after markets closed, however bullish AI sentiment will finally pull extra liquidity away from crypto.
Micron shares surged 16% in premarket buying and selling on Thursday after the reminiscence chipmaker’s third quarter steerage exceeded Wall Avenue expectations. Third-quarter income got here in at $41.5 billion versus estimates of $35.7 billion, whereas earnings per share (EPS) reached $25.11 in contrast with expectations of $20.49.
Reminiscence chips have turn into the spine of AI infrastructure, significantly high-bandwidth reminiscence (HBM), which is important for coaching and working massive AI fashions. CEO Sanjay Mehrotra instructed analysts there was “no line of sight” to when provide would meet up with demand, with the scarcity anticipated to persist nicely past 2027.
The corporate additionally issued robust fourth quarter steerage, forecasting income of roughly $50 billion, nicely forward of Wall Avenue expectations of $43.2 billion.
The AI increase has weighed closely on the crypto market this yr, with bitcoin now greater than 50% beneath its October all-time excessive, buying and selling on the $60,000 degree.