Micron CEO Sanjay Mehrotra speaks at a groundbreaking ceremony for the corporate’s semiconductor manufacturing facility in Clay, New York, on Jan. 16, 2026.
Heather Ainsworth | Bloomberg | Getty Photos
Micron’s income nearly tripled within the newest quarter as outcomes topped analysts’ estimates and steerage sailed previous expectations. The inventory, which is up greater than 350% prior to now 12 months, slipped in prolonged buying and selling.
This is how the corporate did relative to LSEG consensus:
- Earnings per share: $12.20 adjusted vs. $9.31 anticipated
- Income: $23.86 billion vs. $20.07 billion anticipated
Micron is benefiting from hovering demand for Nvidia graphics processing models that run generative synthetic intelligence fashions. Every technology of Nvidia chip packs in additional reminiscence, making a provide crunch. Micron has been working so as to add capability, as have rivals Samsung and SK Hynix.
Income within the fiscal second quarter elevated from $8.05 billion a 12 months earlier, in line with a assertion.
For the present interval, the corporate expects about $33.5 billion in income, up from $9.3 billion a 12 months in the past, implying progress of over 200%. Adjusted earnings per share can be about $19.15, Micron mentioned. Analysts polled by LSEG had anticipated $12.05 in adjusted earnings per share on $24.3 billion in income.
“The step-up in our outcomes and outlook are the result of a rise in reminiscence demand pushed by AI, structural provide constraints and Micron’s robust execution throughout the board,” CEO Sanjay Mehrotra mentioned in ready remarks the corporate issued on the time of the discharge.
Micron’s inventory has been on a tear. The shares tripled in 2025 and have jumped one other 62% 12 months thus far as of Wednesday’s shut. Among the many 10 Most worthy U.S. tech corporations, Micron is the one one which’s up. Oracle is the main decliner, down 22%, and Microsoft and Tesla have additionally seen double-digit share drops.
“Taking a look at how the shares had been buying and selling going into this earnings report, I assumed the most important danger was excessive investor expectations,” mentioned Hendi Susanto, a portfolio supervisor at Gabelli Funds, in an e mail. “Nonetheless, fiscal third-quarter steerage is powerful, effectively above analysts’ and my very own expectations.”
Mehrotra mentioned that AI and traditional servers are dealing with a “lack of sufficient DRAM and NAND provide.” That refers back to the firm’s conventional reminiscence merchandise which have lengthy been utilized in knowledge facilities and gadgets.
Reminiscence corporations have been shifting manufacturing capability largely to high-bandwidth reminiscence, which is embedded onto Nvidia’s newest GPUs and lots of different chips powering AI. These merchandise have greater margins.
The corporate’s GAAP gross margin, the revenue left after accounting for the price of items bought, greater than doubled prior to now 12 months to 74.4% from 36.8%, and elevated from 56% within the prior quarter.
Internet revenue climbed to $13.8 billion, or $12.07 per share, from $1.58 billion, or $1.41 per share, in the identical quarter final 12 months.
Micron mentioned income in its cloud reminiscence enterprise rose greater than 160% to $7.75 billion. The cell and shopper unit noticed even steeper progress, with income leaping to $7.71 billion from $2.24 billion a 12 months in the past.
Reminiscence is usually a commodity enterprise, which comes with decrease margins than different silicon merchandise and short-term contracts. Previously few months, reminiscence corporations have signed longer-term contracts as semiconductor makers work to make sure future capability.
“As AI evolves, we anticipate compute architectures to grow to be extra memory-intensive,” the corporate mentioned in an earnings presentation. “For this reason we strongly consider that Micron is among the largest beneficiaries and enablers of AI.”
Mehrotra mentioned on the earnings name that quantity manufacturing of HBM4 for Nvidia’s Vera Rubin began within the fiscal first quarter, and next-generation HBM4e merchandise will ramp in 2027. Nvidia has mentioned it’s going to make the most of customized HBM in its next-generation Feynman GPU coming in 2028.
Mehrotra added that capital expenditures will “step up meaningfully” in fiscal 2027, with construction-related prices growing by over $10 billion.
Micron is constructing two big new campuses of fabrication vegetation in Idaho and New York to extend its reminiscence manufacturing capability within the U.S. Mehrotra mentioned on the decision that preliminary manufacturing on the Idaho web site is anticipated by mid-2027. Micron broke floor in January on the huge $100 billion New York campus, and expects wafer output by the second half of 2028.
WATCH: How Micron is constructing the biggest-ever U.S. chip fab, regardless of China ban
