Micron on Wednesday reported better-than-expected quarterly results as the memory maker continues to benefit from a surge in demand for AI infrastructure. The stock rose slightly in extended trading.
The company’s performance against LSEG Consensus is as follows:
Earnings per share: $33.42 adjusted vs. $31.61 expected Sales: $54.23 billion vs. $51.07 billion expected
Fourth-quarter sales nearly quadrupled from $11.32 billion in the same period last year, according to a statement.
Micron said it expects revenue of approximately $61.5 billion and adjusted earnings per share of $38.15 for the fiscal first quarter. Analysts polled by LSEG expected adjusted earnings per share of $35.40 on sales of $57 billion.
Micron’s stock price has soared more than 500% over the past year, benefiting from global supply shortages caused by historic levels of demand for memory chips needed for artificial intelligence models and workloads. The shortage has driven up the cost of memory and, as a result, the prices of consumer electronics products such as Apple’s iPad and MacBook.
Hendy Susanto, portfolio manager at Gabelli Funds, said in an email after the release that this was “another strong win and capital raise for Micron.”
“At this time, I have not heard any negative data indicating that memory circulation will begin to decline in the near future,” Susanto wrote.
Micron is the only U.S. manufacturer of high-bandwidth memory (HBM), which consists of stacks of general-purpose dynamic random access memory (DRAM). DRAM sales in the fourth quarter increased 343% year-on-year to $39.8 billion, accounting for 73% of total sales.
CEO Sanjay Mehrotra said on the earnings call that the company has a “strong roadmap for future HBM products” and is working together. Nvidia About the industry’s first custom HBM implementation.
Net income for the latest quarter was $37.7 billion, or $32.87 per share, up from $3.2 billion, or $2.83 per share, in the year-ago period.
Advanced graphics and central processors from chip giants like Nvidia and AMD require increasing amounts of HBM to handle AI workloads, but the world’s leading providers can’t produce enough.
That’s why Micron is investing $250 billion to build two new campuses to manufacture HBM. The company’s largest groundbreaking ceremony was held in January in Clay, New York, and its first new plant in Boise, Idaho, is scheduled to open next year.
HBM leaders SK Hynix and Samsung are also building large new HBM factories in their home country of South Korea. Micron has the smallest HBM market share of the three companies, but its market capitalization still exceeds $1.2 trillion.
Mehrotra attended a summit on AI regulation hosted by President Donald Trump on Tuesday, days after attending a White House dinner with Chinese President Xi Jinping on his first trip to the United States in more than a decade.
Mehrotra said on the call that Micron has increased compensation for all employees in fiscal 2026. Hundreds of Micron employees have threatened to strike at a factory in Taiwan over labor negotiations and pay. Similar strikes have taken place at rivals SK Hynix and Samsung, resulting in bonuses exceeding $500,000.
WATCH: $50 billion expansion in Micron’s hometown of Boise creates billionaires
