Micron CEO Says Generative AI Is Driving Increased Demand For Chips, Sees Acceleration In 2024 Leading To 'Strong' 2025
Portfolio Pulse from Erica Kollmann
Micron Technology, Inc. (NASDAQ:MU) CEO Sanjay Mehrotra discussed the company's future on CNBC, attributing improving financials to better supply-demand balance and increased demand for chips driven by generative AI. Micron expects a return to profitability by May and positive free cash flow by August. Mehrotra predicts growth in AI will lead to higher memory requirements in various devices, boosting sales and profitability. Micron aims to maintain supply management discipline for a strong 2025. MU shares closed up 8.63% following the report.
December 21, 2023 | 10:50 pm
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Micron Technology anticipates increased demand for memory chips due to generative AI, with a return to profitability by May and positive cash flow by August. The company's disciplined supply management is expected to lead to a strong 2025.
The CEO's positive outlook on the impact of generative AI on chip demand, coupled with the expected return to profitability and positive cash flow, is likely to instill investor confidence and drive the stock price up in the short term. The recent share price increase reflects this optimism.
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