Micron Technology‘s stock surged by 14% in after-hours trading following an optimistic first-quarter forecast driven by strong demand for memory chips used in artificial intelligence (AI) computing. The company projects revenue of approximately $8.

Micron Technology surged more than 13% on Thursday, after its first-quarter revenue forecast indicated strong demand and pricing for the high-bandwidth memory chips (HBM) used to support booming generative artificial intelligence technology.

Micron Technology Inc., the largest US maker of computer memory chips, is on track to gain the most in six months after giving surprisingly strong sales and profit forecasts, helped by demand for artificial intelligence gear.