Micron said revenue almost tripled in the latest quarter as results topped analysts’ estimates. The stock slipped in extended trading.
Here’s how the company did relative to LSEG consensus:
Earnings per share: $12.20 adjusted vs. $9.31 expected Revenue: $23.86 billion vs. $20.07 billion expected
Micron is benefiting from soaring demand for Nvidia graphics processing units that run generative artificial intelligence models. Each generation of Nvidia chip packs in more memory, creating a supply crunch. Micron has been working to add capacity, as have competitors Samsung and SK Hynix.
Revenue in the fiscal second quarter increased from $8.05 billion a year earlier, according to a statement.
For the current period, the company expects about $33.5 billion in revenue, up from $9.3 billion a year ago, implying growth of over 200%. Adjusted earnings per share will be about $19.15, Micron said. Analysts polled by LSEG had expected $12.05 in adjusted earnings per share or $24.3 billion in revenue.
“The step-up in our results and outlook are the outcome of an increase in memory demand driven by AI, structural supply constraints and Micron’s strong execution across the board,” CEO Sanjay Mehrotra said in prepared remarks the company issued at the time of the release.
Mehrotra said that AI and conventional servers are facing a “lack of adequate DRAM and NAND supply.” That refers to the company’s traditional memory products that have long been used in data centers and devices.
Memory companies have been shifting production capacity largely to high-bandwidth memory, which is embedded onto Nvidia’s latest GPUs and many other chips powering AI. Those products have higher margins.
The company’s GAAP gross margin, the profit left after accounting for the cost of goods sold, has more than doubled in the past year to 74.4% from 36.8%, and has increased from 56% in the prior quarter.
Net income climbed to $13.8 billion, or $12.07 per share, from $1.58 billion, or $1.41 per share, in the same quarter last year.
The stock has been on a tear. The shares tripled in 2025 and have jumped another 62% year to date as of Wednesday’s close. Among the 10 most valuable U.S. tech companies, Micron is the only one that’s up. Oracle is the leading decliner, down 22%, and Microsoft and Tesla have also seen double-digit percentage drops.
Micron said revenue in its cloud memory business rose more than 160% to $7.75 billion. The mobile and client unit saw even steeper growth, with revenue jumping to $7.71 billion from $2.24 billion a year ago.
Memory is typically a commodity business, which comes with lower margins than other silicon products and short-term contracts. In the past few months, memory companies have signed longer-term contracts as semiconductor companies work to ensure future capacity.
“As AI evolves, we expect compute architectures to become more memory-intensive,” the company said in an earnings presentation. “This is why we strongly believe that Micron is one of the biggest beneficiaries and enablers of AI.”
Mehrotra said on the earnings call that volume production of HBM4 for Nvidia’s Vera Rubin started in the fiscal first quarter, and next-generation HBM4e products will ramp in 2027. Nvidia has said it will utilize custom HBM in its next-generation Feynman GPU coming in 2028.
Mehrotra added that capital expenditures will “step up meaningfully” in fiscal 2027, with construction-related costs increasing by over $10 billion.
Micron is building two giant new campuses of fabrication plants, or fabs, in Idaho and New York to increase its memory manufacturing capacity in the U.S. Mehrotra said on the call that initial production at the Idaho site is expected by mid-2027. Micron broke ground in January on the massive $100 billion New York campus, and expects wafer output by the second half of 2028.
WATCH: How Micron is building the biggest-ever U.S. chip fab, despite China ban
