The memory chipmaker posted $41.46 billion in quarterly revenue and issued stronger than expected guidance as AI demand continued driving memory prices higher.
Micron shares surged nearly 8% in after hours trading on Wednesday after the memory chipmaker reported record quarterly results that comfortably beat Wall Street expectations.
The company generated $41.46 billion in revenue during its fiscal third quarter, up from $23.86 billion in the previous quarter and $9.3 billion during the same period last year.
Wall Street analysts had expected revenue of about $35.9 billion.
Adjusted earnings reached $25.11 per diluted share, compared with analyst estimates near $20.83. Micron reported adjusted net income of $28.86 billion.
The company’s outlook also came in ahead of expectations.
Micron forecast fourth quarter revenue of $50 billion, plus or minus $1 billion, compared with Wall Street estimates of about $43.4 billion.
Adjusted earnings are expected to reach $31 per share, plus or minus $1, compared with estimates near $25.59.
The company expects gross margin to rise to approximately 86% during the fourth quarter after reaching 84.9% on an adjusted basis during the latest period.
Chief Executive Sanjay Mehrotra said the results and stronger outlook reflected the growing strategic importance of memory in artificial intelligence infrastructure.
Micron has benefited from surging demand for high bandwidth memory, data center DRAM and storage products used alongside advanced AI processors.
Its cloud memory business generated $13.77 billion in revenue, while core data center revenue reached $11.52 billion.
Revenue from its mobile and client business also reached $11.52 billion, while automotive and embedded products contributed $4.63 billion.
Micron said its HBM4 products are now shipping in high volumes for a lead customer’s platform, while qualification samples have been delivered to several additional customers.
The company is also developing HBM4E using its next generation DRAM technology, with volume production expected in 2027.
Micron generated $25.39 billion in operating cash flow and $18.3 billion in adjusted free cash flow during the quarter.
The company ended the period with $30.2 billion in cash, marketable investments and restricted cash.
Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our