(Reuters) – Micron Technology (MU) said on Thursday it is reshuffling its business segments to focus on the artificial intelligence-linked demand for its memory chips from large-scale cloud providers.
The new segment, called “cloud memory business unit”, will focus on products used by hyperscalers, as well as its high-bandwidth memory (HBM) chips that help perform data-intensive AI tasks quickly.
HBM chips are closely watched by investors due to their use alongside AI graphic processors, particularly Nvidia’s. Micron is one the top three memory chipmakers in the world, besides South Korea’s SK Hynix and Samsung.
As of 3:23:00 PM EDT. Market Open.
In March, Micron forecast quarterly revenue above Wall Street estimates, backed by demand for HBM.
The new HBM-focused unit will be led by Raj Narasimhan, who helmed the erstwhile “compute and networking business unit”. Under the old structure, this segment covered memory products used by data centers, personal computers, graphics and networking markets.
The other new segments include the “core data center business unit” that will focus on memory and storage products for customers that make data center equipment.
The new “mobile and client business unit” will service the mobile device market, while the “automotive and embedded business unit” will focus on the automotive, industrial and consumer segments.
All units will be led by existing company executives.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Leroy Leo)
