Micron CEO Sanjay Mehrotra speaks at the groundbreaking ceremony for the company’s semiconductor manufacturing facility in Clay, New York, on January 16, 2026.
Heather Ainsworth | Bloomberg | Getty Images
micron’s Revenue nearly tripled in the latest quarter as results beat analysts’ expectations and guidance beat expectations. The company’s stock, which has risen more than 350% over the past year, fell in extended trading.
The company’s performance against LSEG Consensus is as follows:
Earnings per share: $12.20 adjusted vs. $9.31 expected Revenue: $23.86 billion vs. $20.07 billion expected
Micron is benefiting from a surge in demand Nvidia A graphics processing unit that runs generative artificial intelligence models. Nvidia chips are packing more memory with each generation, creating a shortage of supply. Micron, like its competitors, is working on adding capacity samsung and SK Hynix.
According to the announcement, second-quarter sales increased from $8.05 billion in the same period last year.
The company expects sales of about $33.5 billion for the quarter, up from $9.3 billion in the same period last year, representing growth of more than 200%. Adjusted earnings per share will be approximately $19.15, Micron said. Analysts polled by LSEG expected adjusted earnings per share of $12.05 on revenue of $24.3 billion.
“Our improved results and outlook are the result of increased memory demand driven by AI, structural supply constraints and Micron’s overall strong execution,” CEO Sanjay Mehrotra said in comments prepared by the company at the time of the announcement.
Micron’s stock price has plummeted. The stock has tripled in 2025 and is up another 62% year-to-date as of Wednesday’s close. Among the 10 most valuable U.S. technology companies, only Micron is rising. oracle The top decliner was 22% decrease. microsoft and tesla Double-digit percentage declines were also seen.
“After looking at the stock’s trading in the run-up to this earnings release, we believe the biggest risk is that investor expectations are high,” Hendy Susanto, portfolio manager at Gabelli Funds, said in an email. “However, our fiscal third quarter guidance is strong and far exceeds analysts’ and my own expectations.”
Mehrotra said AI and traditional servers face “a shortage of adequate DRAM and NAND supplies.” This refers to the company’s traditional memory products that have been used in data centers and devices for many years.
Memory companies have shifted production capacity primarily to high-bandwidth memory, which is built into Nvidia’s latest GPUs and many other chips that power AI. Those products have higher profit margins.
The company’s GAAP gross profit margin (profit remaining after cost of goods sold) has more than doubled over the past year from 36.8% to 74.4%, up from 56% in the previous quarter.
Net income was $13.8 billion, or $12.07 per share, up from $1.58 billion, or $1.41 per share, in the year-ago period.
Micron announced that revenue for its cloud memory business increased more than 160% to $7.75 billion. Growth in the mobile and client division was even stronger, with revenue jumping to $7.71 billion from $2.24 billion a year ago.
Memory is generally a commodity business, with lower margins and short-term contracts than other silicon products. Over the past few months, memory companies have signed long-term contracts as chipmakers seek to secure future production capacity.
“As AI evolves, we expect computing architectures to require more memory,” the company said in an earnings call. “This is why we strongly believe that Micron is the biggest beneficiary and enabler of AI.”
Mehrotra said on the earnings call that mass production of Nvidia’s HBM4 for Vera Rubin will begin in the first quarter, with next-generation HBM4e products expected to be in mass production in 2027. Nvidia has announced that its next-generation Feynman GPUs, arriving in 2028, will utilize custom HBM.
Mehrotra added that in fiscal 2027, capital spending will increase “significantly” and construction-related costs will increase by more than $10 billion.
Micron is building two new giant manufacturing campuses in Idaho and New York to expand its memory manufacturing capacity in the U.S., Mehrotra said on a conference call, with initial production at the Idaho facility expected by mid-2027. Micron broke ground on its massive $100 billion New York campus in January and expects to begin wafer production by the second half of 2028.
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