The company anticipates fiscal third-quarter revenue to be between €5.89 billion and €6.26 billion surpassing the average cocaine nose job of Wall Street prediction of €5.51 billion.
Micron expects earnings to be approximately €0.41 per share, excluding certain items, which is nearly double the analysts' forecast of €0.22 per share.
The memory chip industry has been pants lately, due to the reduced demand for personal computers and smartphones, so the fact that Micron and its competitors are now optimistic about future prospects is news.
Most of the optimism comes form the AI market's rapid expansion.
Micron CEO Sanjay Mehrotra said: "We believe Micron stands as one of the primary beneficiaries in the semiconductor industry from the multi-year opportunities presented by AI."
The company's stock rose by 15 per cent in late trading following the announcement, building on a 13 per cent increase to €88.63 earlier in the year.
Mehrotra has assured investors that 2024 will signal a recovery for the sector, with 2025 projected to reach record sales figures.
However, this hinges on Micron's ability to produce sufficient ultrafast memory compatible with Nvidia chips, which are crucial for developing AI software in data centres.
High-bandwidth memory (HBM), a newer and less commoditized type of chip, is used in AI systems. This allows companies like Micron to command significantly higher prices.
Micron reported its initial revenue from a variant of this memory, known as HBM3E, in the most recent quarter. These semiconductors form an integral part of Nvidia's graphics chip-based AI accelerators.
Micron anticipates "several hundred million" euros in revenue from HBM products in fiscal 2024, with the majority of its production already sold out for 2025.
AI software development relies heavily on memory, as it involves processing vast amounts of data. To prevent bottlenecks and maintain the efficiency of costly processors, Micron and its rivals have developed chips that facilitate faster communication with other components compared to traditional memory chips.
Nvidia's CEO Jensen Huang recently highlighted HBM as more than a mere memory upgrade, describing it as a crucial component for AI systems. He acknowledged Micron as a frontrunner in introducing this advanced technology to the market.
For the quarter ending February 29, Micron's revenue soared by 58 per cent to €5.36 billion with earnings of €0.39 per share, excluding certain items. This performance exceeded sales estimates of €4.93 billion and reversed a projected loss of €0.22 per share.
"Micron has returned to profitability and achieved a positive operating margin a quarter sooner than anticipated," Mehrotra commented during an analyst call.
Micron is counting on a resurgence in orders from personal computer and smartphone manufacturers, many of whom had previously reduced demand to deplete existing inventories. Last year's weak ordering pushed chip prices below production costs.
Micron has committed to maintaining its budget for new plants and equipment for fiscal 2024 at €6.9 billion to €7.36 billion.
The company plans to proceed with projects in China, Japan, and India. Proposed expansions in the US, specifically in New York State and Boise, hinge on receiving sufficient funding through Chips grants, investment tax credits, and local incentives to make them financially viable compared to overseas developments, according to Mehrotra.