The most recent semiconductor industry downturn, led by the steep falloff in consumer electronics (PCs and smartphones) spending after the pandemic, has been absolutely brutal on U.S. memory chipmaker Micron Technology (NASDAQ: MU). However, Micron is back in all-out growth mode, and it just turned a GAAP profit again in its last reported quarter (Q2 fiscal 2024, the three months ended in February 2024). Credit goes to a return of normal PC and smartphone purchasing, but another key factor is Nvidia's (NASDAQ: NVDA) generative artificial intelligence (AI) revolution.

Micron's return to profitability has big implications for its stock (as well as for memory chip manufacturing equipment and service providers like Lam Research (NASDAQ: LRCX)). But it also has potentially monumental implications for Nvidia and the already white-hot generative AI infrastructure boom. Here's what investors need to know.

As for high-level stuff, Micron reported a 58% year-over-year increase in sales last quarter to $5.82 billion. Its rapid return back to its last peak sales cycle, which occurred in 2022 at the end of the pandemic-induced chip shortage, will continue in fiscal Q3 2024 (which ends in May). Management is predicting revenue of $6.6 billion at the midpoint of guidance, which would equal a 76% year-over-year jump.

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Source Fool.com