**Micron Stock Soars 14% After Upbeat Revenue Forecast**

Micron (MU) saw a dramatic 14% rise in stock value after trading hours on Wednesday, following its projection of a stronger-than-expected revenue for the upcoming quarter. The company forecasted first-quarter revenues to be in the range of $8.5 billion to $8.9 billion, surpassing analysts' expectations of $8.3 billion.

Micron's executives attributed the optimistic outlook to a favorable pricing environment and a significant increase in demand for memory chips, which are essential for powering AI in data centers. "With the advent of AI, we are in the most exciting period that I have seen for memory and storage in my career," remarked CEO Sanjay Mehrotra during an investor call. Mehrotra also highlighted that the company is starting fiscal year 2025 with "the best competitive positioning in Micron's history."

Micron is the first chipmaker to release its quarterly results this earnings season, providing a glimpse into how the semiconductor sector is performing amid high expectations from Wall Street. For its fiscal fourth quarter ending August 29, the company reported revenue of $7.75 billion, which was 93% higher than last year and exceeded the $7.66 billion predicted by analysts. Additionally, adjusted earnings per share came in at $1.18, beating both the top range of Micron's guidance and the Wall Street forecast of $1.11.

The past year has seen a resurgence in Micron’s memory chip business as major tech companies invest heavily in semiconductor hardware for AI data centers. Unlike some of its competitors, Micron partners with industry leader Nvidia (NVDA) by supplying memory chips for Nvidia's highly sought-after GPUs.

Investors' expectations for AI chipmakers have reached unprecedented levels, often leading to disappointment. This was evident when Micron's third-quarter earnings report in late June failed to impress investors, causing shares to dive due to an in-line, rather than an above-expectation, fourth-quarter outlook. Similarly, Nvidia’s stock dipped after its quarterly earnings in August, despite surpassing sales forecasts and more than doubling its profits, as investors had hoped for even more.

Nvidia's stock has since rebounded, and Micron’s solid fourth-quarter results have rejuvenated its stock after several tough months, during which share prices fell from mid-June highs of around $150. The PHLX Semiconductor Sector Index (SOX) has also shown signs of recovery, climbing nearly 6% in the past week as tech stocks rallied in response to significant interest rate cuts by the US Federal Reserve and a broad stimulus package introduced by China’s central bank.