(Reuters) -Micron Technology Inc on Tuesday forecast third-quarter revenue in line with Wall Street expectations, banking on steady demand for memory chip products from the fast-growing artificial intelligence industry.
A proliferation of generative AI chatbots such as Microsoft Corp-backed OpenAI’s ChatGPT has boosted demand for data centers and helped buck the trend of easing demand for chips.
Analysts say the expansion of generative AI comes with an acceleration in data to feed large language models and could fuel a jump in need for more storage.
Chipmakers and electronics companies had prepared for the pandemic-led demand surge to sustain but found themselves grappling with a glut as rising global interest rates and cost of living dampened demand for smartphones and other devices.
Micron said on Tuesday customer inventories are improving and that it expects gradual improvements to the industry’s supply-demand balance.
The company expects third-quarter revenue of $3.70 billion plus or minus $200 million, matching analysts’ average estimate, according to Refinitiv data.
Revenue for the second quarter fell by about 53% to $3.69 billion, compared with estimate of $3.71 billion.
Net loss was $2.3 billion, compared with a profit of $2.26 billion a year earlier.
(Reporting by Akash Sriram in Bengaluru; Editing by Sriraj Kalluvila)
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