Key Points
- Micron Technology topped Wall Street estimates for both revenue and earnings in its fiscal first quarter.
- Shares jumped in extended trading following the report.
- Surging demand from artificial intelligence data centers continues to tighten the supply of memory and storage chips.
Micron Technology reported fiscal first-quarter results on Wednesday that easily beat Wall Street expectations and delivered an upbeat outlook for the months ahead, underscoring how powerful the AI infrastructure boom has become for the memory chipmaker.
Shares of Micron climbed more than 7% in extended trading after the earnings release.
Here’s how the company performed compared with LSEG consensus estimates:
- Earnings per share: $4.78, adjusted, versus $3.95 expected
- Revenue: $13.64 billion, compared with $12.84 billion expected
Looking ahead, Micron forecasts about $18.70 billion in revenue for the current quarter, far above the $14.20 billion expected by analysts. The company also said it expects adjusted earnings of roughly $8.42 per share, blowing past expectations of $4.78.
Micron Just Reset Wall Street’s Expectations
This was not a beat. It was a repricing event.
Why this guidance matters
The magnitude of Micron’s forecast suggests an abrupt shift in earnings power, driven by intense AI-related memory demand. For investors, this marks a clear inflection point in the semiconductor cycle — not incremental progress, but structural acceleration.
“This growth in AI data center capacity is driving a significant increase in demand for high-performance and high-capacity memory and storage,” CEO Sanjay Mehrotra said during an earnings call. He added that server unit demand has strengthened sharply, with server units growing in the “high teens” in 2025.
Micron reported net income of $5.24 billion for the quarter, or $4.60 per share, up from $1.87 billion, or $1.67 per share, in the same period a year earlier. Revenue jumped 57% year over year.
The company produces memory chips and solid-state storage used in computers and servers. Those components have been in tight supply as the rapid expansion of AI data centers requires enormous volumes of both types of chips.
Strong demand has helped fuel Micron’s stock rally, with shares up 168% so far in 2025.
Micron is one of just three companies capable of producing the high-bandwidth memory essential for AI workloads. Its chips, for example, are used extensively in AMD’s latest artificial intelligence processors.
The company reported $5.28 billion in cloud memory sales, which doubled from a year earlier. Core data center sales reached $2.38 billion, up 4% year over year. Micron said higher pricing drove growth across both segments.
Pricing Power Is Driving Micron’s Growth
Segment performance shows margin-led expansion rather than volume-driven growth.
The signal beneath the numbers
Micron confirmed that higher pricing — not shipment volume — was the primary driver across both segments. For investors, this marks a critical shift: pricing leverage has returned to the memory market, supporting margins, earnings durability, and valuation reset potential.
Earlier this month, Micron announced it would stop selling memory products directly to consumers, a move aimed at conserving supply for AI chips and data center customers.
