Micron Technology reported better-than-expected quarterly earnings on Wednesday, driven by robust demand for memory chips used in artificial intelligence systems. The company’s stock gained modestly in extended trading following the announcement.
The memory maker’s revenue climbed significantly in the fiscal fourth quarter to approximately $39.8 billion in DRAM sales, representing a 343% increase from the prior year period. Total quarterly revenue nearly quadrupled from $11.32 billion in the year-ago quarter. For the upcoming fiscal first quarter, Micron guided for revenue of approximately $61.5 billion with adjusted earnings per share of $38.15, both figures surpassing consensus estimates that had projected $57 billion in revenue and $35.40 in adjusted earnings per share.
Micron has experienced substantial stock appreciation, gaining more than 500% over the preceding year as global memory chip supplies struggle to meet unprecedented demand for AI infrastructure. The company holds a unique position as the only U.S.-based manufacturer of high-bandwidth memory, or HBM, a critical component for advanced processors from companies including Nvidia and AMD. Chief Executive Sanjay Mehrotra noted on the earnings call that the company maintains a robust pipeline of HBM products and is collaborating with Nvidia on custom HBM solutions.
Net income for the latest quarter reached $37.7 billion, or $32.87 per share, compared with $3.2 billion, or $2.83 per share, in the prior year. To address supply constraints, Micron is undertaking a $250 billion investment program to establish manufacturing campuses, with a major facility beginning construction in Clay, New York, earlier in the year and a new fabrication plant in Boise, Idaho, expected to commence operations in the following year. Rival manufacturers SK Hynix and Samsung are pursuing comparable large-scale production expansions in South Korea, though Micron maintains the smallest market share among the three global HBM leaders despite maintaining a market capitalization exceeding $1.2 trillion.
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