Micron’s stock makes late-trading gains as AI memory chips drive solid jump in revenue

Memory chip maker Micron Technology Inc. posted a strong earnings and revenue beat, demonstrating that it’s still enjoying a significant boost from artificial intelligence. Growth in sales of its highest-capacity memory products was rampant, and its stock moved higher after-hours.

The company reported second-earnings before certain costs such as stock compensation of $1.56 per share, up 42 cents from the prior year and beating Wall Street’s consensus forecast of $1.43 by a comfortable margin. Revenue for the period hit $8.05 billion, up 38% and also beating the Street’s target of $7.9 billion.

All told, Micron’s net income grew to $1.58 billion, almost doubling from the $793 million profit it delivered in the same period last year.

Micron said its sales growth was primarily driven by its newest high-bandwidth memory chips, which have become a key component of high-end AI servers. During the quarter, sales of HBM chips surpassed the $1 billion milestone for the first time, up 50% compared to the prior quarter.

Micron Chairman, President and Chief Executive Sanjay Mehrotra (pictured) hailed the company’s impressive growth in data center revenue, which tripled from the previous year.

“We are extending our technology leadership… We expect record quarterly revenue in fiscal Q3, with DRAM and NAND demand growth in both data center and consumer-oriented markets,” he added.

Micron is a leader in the market for dynamic random-access memory chips, which are used in PCs and data center servers. It also sells flash memory chips, which are found in smartphones and solid-state drives. More recently, it has become a major player in the market for HBM chips, where it competes with the likes of SK Hynix Inc. and Samsung Electronics Co. Ltd.

Looking to the next quarter, Micron offered a forecast of $1.57 per share in earnings, coming in ahead of the Street’s guidance of $1.52. In terms of revenue, it said it’s expecting to generate $8.8 billion in sales, plus or minus $200 million. That’s nicely ahead of Wall Street’s forecast of $8.47 billion in revenue.

Micron’s stock gained 2% in extended trading on the back of the report, as investors try to understand if the company is in just another one of its endless industry cycles, where demand increases before dropping off again, or if the demand for HBM memory is more of a long-term revenue driver for the company.

With Micron’s guidance promising yet more growth, it’s likely to have strengthened investor’s confidence in the longer-term bull case, but the market remains well aware that it all rests on the industry continuing to throw money at AI. In addition, analysts have forecast DRAM sales to grow by 31% over the next six quarters.

Mehrotra told analysts on a conference call that the company has sold all of the HBM chips it has the capacity to manufacture in calendar 2025.

“We expect multi-billion revenue in fiscal 2025,” he said. “We are seeing strong demand for our HBM supply in 2026 too, and are in discussions with customers on agreements for their calendar 2026.”

The CEO also told analysts he’s expecting personal computer sales to grow by a single-digit percentage this year. According to him, this will boost the company further as the next-generation AI PCs expected to drive that growth require substantially more memory than standard PCs.

“Micron is in the best competitive position in its history, and we are achieving shared gains across high-margin product categories in our industry,” he insisted.

Micron’s stock is doing better than most, having gained 22% since the start of the year, while the Nasdaq composite index is down 8% over the same timeframe.

Photo: SiliconANGLE

Enjoy the perfect blend of retro charm and modern convenience with the Udreamer Vinyl Record Player. With 9,041 ratings, a 4.3/5-star average, and 400+ units sold in the past month, this player is a fan favorite, available now for just $39.99.

The record player features built-in stereo speakers that deliver retro-style sound while also offering modern functionality. Pair it with your phone via Bluetooth to wirelessly listen to your favorite tracks. Udreamer also provides 24-hour one-on-one service for customer support, ensuring your satisfaction.

Don’t miss out—get yours today for only $39.99 at Amazon!

Help Power Techcratic’s Future – Scan To Support

If Techcratic’s content and insights have helped you, consider giving back by supporting the platform with crypto. Every contribution makes a difference, whether it’s for high-quality content, server maintenance, or future updates. Techcratic is constantly evolving, and your support helps drive that progress.

As a solo operator who wears all the hats, creating content, managing the tech, and running the site, your support allows me to stay focused on delivering valuable resources. Your support keeps everything running smoothly and enables me to continue creating the content you love. I’m deeply grateful for your support, it truly means the world to me! Thank you!