tech
Micron stock climbs as CEO highlights AI demand for memory
"We need more and more memory to address that demand," Micron CEO Sanjay Mehrotra told CNBC's Jim Cramer.
TL;DR
- Micron stock rose nearly 8% on Friday, influenced by robust earnings from Taiwan Semiconductor Manufacturing Co.
- Demand for AI chip supply chain stocks is increasing due to continued AI infrastructure spending.
- Micron is a key maker of memory and storage for AI systems, with its stock up over 250% in the past year.
- Memory is essential for AI systems to handle large datasets for running AI models efficiently.
- Micron CEO Sanjay Mehrotra stated that AI-driven demand is accelerating and requires increased memory production.
- The company is investing $200 billion to build new production capacity in the U.S., including fabrication plants in Idaho and New York.
- Micron expects to see continued tightness in memory supply through 2027, driven by AI demand.
- Stronger-than-expected growth was also observed in memory and storage for PCs.
- Prices for essential memory components are predicted to rise by an estimated 55% in the first quarter.