Micron Forecasts Recovery in Chip Demand Driven by Generative AI

Company anticipates return to profitability in 2024, with high-bandwidth memory chips for AI platforms expected to generate significant revenue.

Micron Technology's CEO, Sanjay Mehrotra, attributes the company's improving financials to the increasing demand for memory chips driven by the growth of generative AI in various applications.
The company forecasts a return to profitability by May 2024 and positive free cash flow by August 2024.
Micron is in the final stages of qualifying its high-bandwidth memory chips for use in Nvidia's most powerful AI platforms, expecting to draw in 'several hundred million' dollars in revenue in fiscal 2024.
Mehrotra anticipates a reversal to modest unit growth for sales of PCs, smartphones and servers in 2024, as each unit will require more memory due to their AI capabilities.
Micron plans to maintain a balance between consumer demand and the supply of chips throughout 2024, which Mehrotra referred to as a 'recovery year.'