Micron Technology (NASDAQ: MU) stock surged by about 16% in pre-market trading on Thursday, following a stronger-than-expected Q4 earnings report.

Continued growth of demand for artificial intelligence hardware is proving a boon for this memory chip company.

Micron Technology (MU) stock jumped after the memory-chip maker posted better-than-expected quarterly results and issued guidance that topped Wall Street expectations. The stock was up more than 13% in recent trading.

Micron’s stock momentum after earnings reflects relief over the guidance as well as an appreciation for the company’s ability to benefit from AI trends.