Micron (NASDAQ:MU) stock, which manufactures and sells computer memory devices and chips, is one of today’s top-trending tickers, and its shares are climbing 7% in early trading. The company reported stronger-than-expected fiscal first-quarter results yesterday after the market closed. Moreover, Micron pleased the Street by stating that its financial results going forward would be boosted by growing demand for its chips for use in “AI-related technologies.”

Micron’s Q1 Results Beat the Average Outlook

MU’s revenue jumped 15.5% last quarter versus the same period a year earlier to $4.73 billion. Analysts, on average, had expected the firm’s top line to come in at $4.64 billion.

Its loss per share, excluding certain items, came in at 95 cents versus the mean estimate of a loss per share of 97 cents.

Also noteworthy is that Micron anticipates that it will generate a loss per share of 28 cents in the current quarter, much better than analysts’ mean outlook of 62 cents. The company reported that the demand for its chips for use in artificial intelligence (AI) applications would boost its results for this quarter.

Two Positive Catalysts for MU Stock in 2024

Micron expects its 2024 results to be helped by its deal with Nvidia (NASDAQ:NVDA). The latter firm is incorporating MU’s products into its AI chips.

Moreover, MU predicts the overall global demand for “flash storage and dynamic random access memory” offerings will rebound in 2024, and it anticipates that the global supply of DRAM will fall next year. Micron is a leading supplier of DRAM.

The chipmaker’s shares have climbed 9% in the last month, 24% in the last three months and 68% year-to-date.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.