Reuters Micron Technology forecast quarterly revenue above market estimates on Wednesday, and its shares jumped nearly 5 in extended trading on signs of memory chip recovery in 2024 after one of the most significant downturns in years.

Demand for flash storage and dynamic random access memory DRAM should keep improving next year, while at the same time supply will begin to approach historically normal levels, the memory chipmaker said.

Memory prices, which slumped this year, will improve next year and rise further in 2025, Micron CEO Sanjay Mehrotra said in a conference call.

Micron forecast revenue of 5.3 billion, plus or minus 200 million, for the second quarter, compared with estimates of 5.03 billion, according to LSEG data.

Micron said it expects the supply of chips for PCs, mobile devices and other chips to approach normal levels in the first half of next year.

Micron is a closely watched chipmaker it reports results that include two months of information ahead of companies that report results in January, and its memory products can be a signal for demand in other semiconductor markets.

Businesses have begun to incorporate generative artificial intelligence into various products and services that have boosted demand for Micron39;s highbandwidth memory chips, which are necessary to train large language models that form the foundation of AI tech.

Demand for AI servers has been strong as data center infrastructure operators shift budgets from traditional…