Micron Shares Rise After Record Revenue on AI Chip Boom
The memory chip maker surpassed Q4 expectations with $11.32 billion in sales and issued a strong forecast, citing surging data center demand.
Micron Technology (MU) shares climbed over 2% in after-hours trading after the company , fueled by the explosive growth in artificial intelligence.
The Boise-based chipmaker announced record quarterly sales of $11.32 billion, a significant 46% increase from the same period last year. The performance was well ahead of Wall Street estimates, driven by what the company described as surging demand for its memory chips in AI hardware. Adjusted earnings per share came in at $3.03, also beating analyst consensus.
The growth was primarily powered by the company's data center business, which saw record revenue as demand for high-bandwidth memory (HBM) for AI applications intensifies. , accounting for nearly 80% of total sales for the quarter, underscoring the company's pivotal role in the AI supply chain.
Looking ahead, Micron provided a bullish forecast for its first fiscal quarter of 2026, projecting record revenue of $12.5 billion. This optimistic guidance suggests management sees continued momentum from the AI sector, a sentiment that has resonated with investors and analysts.
In response to the strong report, on the company's prospects. Several firms had raised their price targets on Micron ahead of the announcement, citing the favorable memory market and the company's strategic position. The consistent performance marks the ninth consecutive quarter that Micron has exceeded consensus earnings estimates, solidifying its reputation for solid execution in a highly competitive market.