The Micron logo is seen displayed at the 8th China International Import Expo.
Micron Technology 's stock jumped 10% after the company signaled robust demand for its memory chips and blew away fiscal first-quarter estimates.
During an earnings call with analysts, Micron, which makes memory storage used for computers and artificial intelligence servers, said rapid AI infrastructure scaling has fueled greater demand for its products.
Micron said it expects the total addressable market for high-bandwidth memory to hit $100 billion by 2028, growing at a 40% compounded annual growth rate.
Management also upped its capital expenditures guidance to $20 billion from $18 billion and guided to 68% gross margins as memory prices rise and the company passes on costs to customers.
"We are more than sold out," said business chief Sumit Sadana. "We have a significant amount of unmet demand in our models and this is just consistent with an environment where the demand is substantially higher than supply for the foreseeable future.
Micron topped Wall Street estimates for the fiscal first quarter and issued blowout guidance.