Micron Technology beats estimates for third-quarter revenue

(Reuters) -Chipmaker Micron Technology beat estimates for third-quarter revenue on Wednesday, driven by a surge in demand for its memory chips from the booming AI industry and improved pricing in other markets.

Shares of the Boise, Idaho-based company fell 6.2% in extended trading. Investors had sent up the stock 13% this month ahead of earnings on optimism that Micron would benefit from AI-driven demand.

Micron is one of the few providers of high-bandwidth memory chips used in the most advanced AI systems, allowing it to cash in on surging demand for the semiconductors.

The company said in March its entire supply of HBM chips was sold out for 2024, while the majority of the 2025 production had been allocated. The chips are used in the AI processors designed by Wall Street darling Nvidia.

Micron reported revenue of $6.81 billion for the third quarter, compared with an estimate of $6.67 billion, according to LSEG data.

(Reporting by Harshita Mary Varghese in Bengaluru and Max A. Cherney in San Francisco; Editing by Pooja Desai)