Micron Revenue Quadruples to $41.46B as AI Memory Crunch Drives Prices

Micron reported fiscal third quarter revenue of $41.46 billion on Wednesday, more than quadrupling from $9.3 billion a year earlier, as soaring memory prices driven by artificial intelligence demand boosted results. The memory maker's stock rose about 9% in extended trading following the announcement. Memory prices have skyrocketed in recent years as AI chip production consumed available capacity from a limited number of vendors, with data center demand pushing up prices across smartphones, laptops, and other devices.

Micron Reports Record Revenue and Beats Analyst Estimates

Micron delivered revenue of $41.46 billion versus the $35.84 billion LSEG consensus estimate. Adjusted earnings per share reached $25.11, exceeding the $20.78 analyst estimate. The results marked a significant acceleration from the $9.3 billion in revenue reported in the year-ago period.

Micron Forecasts $50 Billion Revenue for Current Quarter

For the current quarter, Micron said it expects revenue of about $50 billion, up from $11.3 billion a year earlier. Analysts were looking for a revenue forecast of $43.58 billion, according to LSEG. The guidance reflects continued strong demand for memory products used in AI applications.

Gross Margin Surges to 81.2% in Third Quarter

Micron's gross margin jumped to 81.2% in the third quarter from 69% in the prior period and 27% a year earlier. Net income during the quarter was $28.24 billion, or $24.46 per share, versus $1.89 billion, or $1.68 per share in the year-ago period. The profitability improvements reflect both higher selling prices and production efficiencies.

Stock Price Climbs 700% Over Past Year

Micron's stock price is up roughly 700% over the past year, lifting the company's market cap past $1 trillion. The company's technology is essential for chips made by Nvidia and Google, as well as the servers that house those companies' processors.

FAQ

What revenue did Micron report for its fiscal third quarter? Micron reported fiscal third quarter revenue of $41.46 billion on Wednesday, more than quadrupling from $9.3 billion a year earlier.

What is Micron's revenue guidance for the current quarter? Micron said it expects revenue of about $50 billion for the current quarter, up from $11.3 billion a year earlier, exceeding the $43.58 billion analyst forecast.

Why have memory prices increased significantly? Memory prices have skyrocketed as AI chip production consumed all available capacity from a limited number of vendors, with data center demand pushing up prices across smartphones, laptops, and other devices.