Micron mentioned income nearly tripled within the newest quarter as outcomes topped analysts’ estimates. The inventory slipped in prolonged buying and selling.
Here is how the corporate did relative to LSEG consensus:
- Earnings per share: $12.20 adjusted vs. $9.31 anticipated
- Income: $23.86 billion vs. $20.07 billion anticipated
Micron is benefiting from hovering demand for Nvidia graphics processing items that run generative synthetic intelligence fashions. Every technology of Nvidia chip packs in additional reminiscence, making a provide crunch. Micron has been working so as to add capability, as have opponents Samsung and SK Hynix.
Income within the fiscal second quarter elevated from $8.05 billion a 12 months earlier, in keeping with a assertion.
For the present interval, the corporate expects about $33.5 billion in income up from $9.3 billion a 12 months in the past, implying development of over 200%. Adjusted earnings per share will likely be about $19.15, Micron mentioned. Analysts polled by LSEG had anticipated $12.05 in adjusted earnings per share or $24.3 billion in income.
“The step-up in our outcomes and outlook are the end result of a rise in reminiscence demand pushed by AI, structural provide constraints and Micron’s robust execution throughout the board,” CEO Sanjay Mehrotra mentioned in ready remarks the corporate issued on the time of the discharge.
Mehrotra mentioned that AI and standard servers are dealing with a scarcity a “lack of enough DRAM and NAND provide.” That refers back to the firm’s conventional reminiscence merchandise which have lengthy been utilized in information facilities and units.
Reminiscence firms have been shifting manufacturing to capability largely to high-bandwidth reminiscence, which is embedded onto Nvidia’s newest GPUs and plenty of different chips powering AI. These merchandise have larger margins.
The corporate’s GAAP gross margin, the revenue left after accounting for the price of items offered, has greater than doubled prior to now 12 months to 74.4% from 36.8%, and has elevated from 56% within the prior quarter.
Web revenue climbed to $13.8 billion, or $12.07 per share, from $1.58 billion, or $1.41 per share, in the identical quarter final 12 months.
The inventory has been on a tear. The shares tripled in 2025 and have jumped one other 62% 12 months up to now as of Wednesday’s shut. Among the many 10 most beneficial U.S. tech firms, Micron is the one one which’s up. Oracle is the main decliner, down 22%, and Microsoft and Tesla have additionally seen double-digit proportion drops.
Micron mentioned income in its cloud reminiscence enterprise rose greater than 160% to $7.75 billion. The cellular and consumer unit noticed even steeper development, with income leaping to $7.71 billion from $2.24 billion a 12 months in the past.
Reminiscence is usually a commodity enterprise, which comes with decrease margins than different silicon merchandise and short-term contracts. Prior to now few months, reminiscence firms have signed longer-term contracts as semiconductor firms work to make sure future capability.
“As AI evolves, we anticipate compute architectures to turn into extra memory-intensive,” the corporate mentioned in an earnings presentation. “Because of this we strongly consider that Micron is likely one of the greatest beneficiaries and enablers of AI.”
Mehrotra mentioned on the earnings name that quantity manufacturing of HBM4 for Nvidia’s Vera Rubin began within the fiscal first quarter, and next-generation HBM4e merchandise will ramp in 2027. Nvidia has mentioned it would make the most of customized HBM in its subsequent technology Feynman GPU coming in 2028.
Mehrotra added that capital expenditures will “step up meaningfully” in fiscal 2027, with construction-related prices growing by over $10 billion.
Micron is constructing two big new campuses of fabrication vegetation, or fabs, in Idaho and New York to extend its reminiscence manufacturing capability within the U.S. Mehrotra mentioned on the decision that preliminary manufacturing on the Idaho website is predicted by mid-2027. Micron broke floor in January on the huge $100 billion New York campus, and expects wafer output by the second half of 2028.
WATCH: How Micron is constructing the biggest-ever U.S. chip fab, regardless of China ban
