Micron Technology Surpasses Expectations on Strong AI-Driven Demand, Rockets Up in After-Hours Trading
Micron Technology announced fiscal first-quarter results that significantly exceeded Wall Street’s projections for both sales and earnings per share. The memory and storage solutions giant also issued an upbeat forecast for the current quarter, signaling continued robust demand, particularly from the burgeoning artificial intelligence sector. Following the announcement, Micron shares surged over 7% in extended trading.
For the fiscal first quarter, Micron reported adjusted earnings per share of $4.78, a substantial beat compared to the LSEG consensus estimate of $3.95. Revenue for the quarter came in at $13.64 billion, surpassing the $12.84 billion anticipated by analysts.
Looking ahead, Micron provided an optimistic outlook for the second fiscal quarter, projecting revenue of approximately $18.70 billion. This figure significantly outpaces the LSEG expectation of $14.20 billion. The company also anticipates adjusted earnings per share to reach around $8.42, a considerable leap from the $4.78 per share consensus.
“The expansion of AI data center capacity is fundamentally reshaping the demand landscape for high-performance and high-capacity memory and storage solutions. We are observing a pronounced strengthening in server unit demand,” stated Micron CEO Sanjay Mehrotra during an earnings call with analysts. He further elaborated that the company estimates server unit growth to be in the “high teens” for the fiscal year 2025.
Micron posted a net income of $5.24 billion, or $4.60 per share, for the first quarter, a dramatic increase from $1.87 billion, or $1.67 per share, in the corresponding period a year earlier. Overall revenue experienced a remarkable surge of 57% on a year-over-year basis, underscoring the company’s impressive growth trajectory.
The strong performance can be attributed to the escalating demand for semiconductors, particularly memory and solid-state storage, which are critical components for computers and advanced computing applications. The ongoing boom in artificial intelligence infrastructure necessitates vast quantities of these specialized chips, creating a supply-demand imbalance that has benefited leading manufacturers like Micron.
Micron is strategically positioned as one of the few companies capable of producing the high-bandwidth memory essential for AI applications. For instance, its memory solutions are integral to the functionality of advanced AI chips from companies such as AMD.
The company’s cloud memory sales reached $5.28 billion, effectively doubling on an annual basis. Core data center sales, while also experiencing growth, were up 4% year-over-year to $2.38 billion. Micron indicated that both these business segments were positively influenced by increased pricing power.
In a strategic move to prioritize supply for the high-demand AI chips and data centers, Micron recently announced its decision to cease direct sales of memory and other components to consumers. This initiative aims to ensure that its production capacity is fully dedicated to meeting the insatiable appetite of the enterprise and AI markets.
The increased demand for memory, driven by the transformative power of AI, has propelled Micron’s stock performance, with shares already appreciating by 168% in 2025 prior to these latest results. This sustained growth highlights Micron’s pivotal role in enabling the next wave of technological innovation.
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