The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

Micron (MU) announced its third quarter earnings after the bell on Wednesday, beating analysts' expectations on the top and bottom lines and surpassing estimates for the company's Q4 revenue outlook.

Micron also declared a quarterly dividend of $0.15 per share.

Micron stock rose more than 6% on the news, pushing chip stocks broadly higher after tumbling earlier this week.

For Q4, the company said it expects to bring in between $49 billion and $51 billion in revenue. Wall Street was projecting revenue of $43.2 billion.

For the quarter, Micron reported earnings per share (EPS) of $25.11 on revenue of $41.5 billion. Analysts were anticipating EPS of $20.39 and revenue of $35.1 billion, according to Bloomberg analyst consensus estimates.

Micron's adjusted gross margins topped 84.9%, beating expectations of 81.83%.

Micron's earnings report comes after the company and Anthropic (ANTH.PVT) announced a strategic agreement under which Micron will supply Anthropic with its memory and storage chips.

Data center construction is driving immense demand for both memory (DRAM) and storage (NAND) chips.

DRAM is a vital component in AI servers, serving as a kind of holding place for important data that GPUs and CPUs need to access quickly. It's used to build high-bandwidth memory, or HBM, which is the memory used in AI data centers. But it's also used to produce DDR RAM, found in everything from your smartphone and laptop to video game consoles.

In Q3, Micron's DRAM memory revenue for the quarter hit $31.3 billion, versus expectations of $27.5 billion, while NAND storage revenue came in at $9.9 billion. Analysts were projecting revenue of $7.7 billion.

Micron stock has soared a staggering 727% over the past 12 months and is up 270% since January. Rival memory maker SK Hynix (000660.KS) has seen similar stock movement, with shares rocketing 826% higher over the past 12 months and 296% year to date.

But those kinds of massive gains have raised concerns among some analysts and investors. AI bulls, however, say the proof is in the earnings numbers.

The incredible demand from deep-pocketed data center builders, however, has put pressure on electronics manufacturers, which are battling to get their share of memory and storage chips for their devices.

Video game consoles were among the first to take it on the chin, with Sony (SONY), Microsoft (MSFT), and Nintendo (NTDOY) each raising the prices of their systems. But the memory shortage-induced price increases have since spread across the consumer technology space.

Apple (AAPL) has already said it will have to raise prices on some of its devices due to the shortage and will likely take a hit to its margins in the coming quarters.

Industry analysts have also warned that laptop and smartphone sales could decline in the months ahead as consumers balk at higher prices.

Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.

Click here for the latest technology news that will impact the stock market

Read the latest financial and business news from Yahoo Finance