Micron quadrupled its revenue to more than $41bn this quarter, around $6bn more than analyst expectations.

A surge in business from AI companies and high projected earnings have sent chipmakers Micron and Qualcomm’s shares soaring.

Leading chipmakers have become some of the main benefactors of the AI race as tech giants spend billions to build and tap into AI data centres to keep up with competitors.

Micron witnessed a stellar quarter, quadrupling its revenue to more than $41bn – up from $9.3bn a year earlier, and around $6bn more than analysts’ set expectation of roughly $35bn.

The company expects revenue of around $50bn for the current quarter, up from $11.3bn the year before. Analysts expected this to range around $43bn.

Micron’s shares jumped in the double digit percentage following the news yesterday (24 June), before easing marginally. They had already more than tripled this year and outpaced all other major chip stocks in the US.

Alongside the glowing quarterly report, the chipmaker announced yesterday that it signed 16 long-term agreements with data centre operators and automakers. It expects financial commitments of $22bn from the deals.

Nvidia has also tapped Micron for its HBM4 memory chips for its next-generation Vera Rubin platform.

The surging demand drove Micron’s market value to more than $1trn just last month alongside South Korean chipmaker SK Hynix.

Similarly, Qualcomm said it expects to create $15bn in sales from its data centre business by 2029. The company also expects $40bn in non-handset revenue by then – around double its previous fiscal target.

Company chief financial officer Akash Palkhiwala told investors that the data centre business will bring in $5bn for the fiscal year 2027 – with $1bn alone from the custom chips it will sell customers. Shares went up 15pc following the news.

Microsoft and Meta have tapped Qualcomm for its new AI chips that relies on cheap memory chips used in smartphones and laptops, while two unnamed hyperscalers will purchase custom chips, the company said.

Qualcomm’s move to AI chips comes as the smartphone market is negatively affected in a chip shortage driven by the continuously growing demand for AI infrastructure.

Don’t miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic’s digest of need-to-know sci-tech news.