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A person walks by a sign for Micron Technology headquarters in San Jose, California, on June 25, 2025.
Justin Sullivan | Getty Images
Micron reported a strong earnings beat on Tuesday, fueled by surging demand for its memory and storage solutions. The company exceeded expectations on both earnings and revenue, and issued a bullish forecast for the current quarter, sending its stock higher in after-hours trading.
Key figures from the report, compared to LSEG consensus estimates, include:
- Earnings per share: $3.03 adjusted vs. $2.86 expected
- Revenue: $11.32 billion vs. $11.22 billion expected
Looking ahead, Micron anticipates revenue of approximately $12.5 billion for its fiscal first quarter, significantly surpassing the $11.94 billion average analyst estimate compiled by LSEG.
The company reported a net income of $3.2 billion, or $2.83 per share, a substantial increase compared to $887 million, or 79 cents per share, in the same period last year.
Micron shares have experienced a remarkable surge in 2025, nearly doubling in value Year-To-Date (YTD). As a leading manufacturer of memory and storage solutions crucial for modern computing, Micron is strategically positioned to capitalize on the burgeoning artificial intelligence (AI) market. Specifically, high-end AI chips, particularly those designed by Nvidia, necessitate increasingly sophisticated memory solutions, commonly referred to as High-Bandwidth Memory (HBM), a product in which Micron has established a significant foothold.
“As the only U.S.-based memory manufacturer, Micron is uniquely positioned to capitalize on the AI opportunity ahead,” stated Micron CEO Sanjay Mehrotra in a released statement. Mehrotra’s statement is underpinned by the growing geopolitical considerations surrounding semiconductor manufacturing, with increased focus on domestic production and supply chain security.
The company’s overall revenue demonstrated a robust 46% year-over-year increase during the reported quarter. This growth is indicative of the broader recovery in the memory chip market, which had previously faced headwinds from oversupply and softening demand.
Micron’s largest business unit, catering to cloud providers, reported impressive sales of $4.54 billion, more than tripling on a year-over-year-basis. This segment is directly correlated to the expansion of cloud computing infrastructure and the increasing reliance on memory-intensive applications, such as large language models (LLMs).
However, the company’s core data center business unit experienced a 22% decline in sales, totaling $1.57 billion in revenue. This dip may be attributed to fluctuations in data center spending cycles and potential inventory adjustments amongst Micron’s customer base. Experts suggest the data center segment’s temporary slowdown could also reflect increased investment in accelerated computing architectures tailored for AI workloads, subtly shifting demand towards HBM and related memory technologies. Moving forward, successful navigation of evolving demand characteristics within the data center landscape will be key to maintain Micron’s projected accelerated growth.
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