On Wednesday, Micron Technology ( MU ) topped estimates with its robust second fiscal quarter results. Upon the report, shares of the Nvidia Corporation ( NVDA ) supplier surged to a record high.

Second Quarter Of Fiscal 2024

For the quarter ended on February 29th, Micron reported revenue grew 58% to $5.82 billion, leaving Micron with a profit of $793 million, or 71 cents a share, improving from last year's comparable quarter when it reported a loss of $2.31 billion, or $2.12 a share.

On Wednesday, Micron revealed its high-bandwidth memory (HBM) ultrafast semiconductors used for AI development were sold out for 2024 while the majority of its 2025 supply has also been allocated. Chief business officer, Sumit Sadana, also revealed that Micron signed up new customers for its HBM products that it was yet to announce.

Third Fiscal Quarter Guidance Also Topped Estimates

Micron guided for revenue in the range between $6.4 and $6.8 billion and earnings per share between $0.38 and $0.52.

Nvidia ( NVDA ) is to use Micron's chip in its next-generation H200 graphic processing units.

Micron is one of the two suppliers of HBM chips to Nvidia ( NVDA ) along with SK Hynix, who also sold out its 2024 output. A month ago, Micron started mass producing its high-bandwidth memory chips for use in latest Nvidia ( NVDA )-made semiconductors. Nvidia ( NVDA ) is expected to start shipping its latest semiconductors in the second quarter which should overtake the current H100 chip that has already triggered a massive surge in revenue. The demand for HBM chips for use in AI has fueled hopes that Micron would be able to weather a slow recovery in its other markets. HBM is also one of Micron's most profitable products, partly because of the technical complexity of its construction.

Micron is well positioned to benefit from AI hype.

Micron president and CEO Sanjay Mehrotra highlighted the multi-year opportunity provided by AI in the semiconductor industry. Just for the fiscal 2024, Micron is on track to make revenue of several hundred million dollars from HBM chips.

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