Micron Technology reported stronger-than-expected earnings for its fiscal fourth quarter, signaling ongoing positive momentum for the company and the broader AI industry. The Idaho-based memory chip giant, a key player in AI data centers, recorded $11.3 billion in revenue, surpassing analysts’ expectations of $11.15 billion. The company achieved an adjusted earnings per share of $3.03, higher than the projected $2.84.
This success stems largely from the booming demand for AI data centers, which contributed to 40% of the company’s total revenue in the quarter. Following the announcement, Micron’s stock briefly rose 2% in after-hours trading, surpassing its recent all-time high before slightly retracting.
The company’s outlook for the first fiscal quarter of 2026 is also promising, with projected revenue between $12.2 billion and $12.8 billion, exceeding the anticipated $11.9 billion. Expected earnings per share range from $3.60 to $3.90, also higher than the forecasted $3.05.
Micron’s CEO, Sanjay Mehrotra, highlighted the significance of AI in driving future investments, anticipating trillions to be funneled into the sector, with significant portions allocated to memory technologies where Micron holds a unique position as the sole U.S.-based manufacturer.
In response to increasing pressure to boost domestic production, Micron plans to invest $200 billion in U.S. facilities. This aligns with the company’s strategy to capitalize on the fast-growing AI market, setting it apart from South Korean competitors SK Hynix and Samsung Electronics, with the latter trailing in AI advancements.
Micron’s leadership is partly attributed to its DRAM (dynamic random access memory) technology, especially its HBM (high bandwidth memory) chips. These chips are integral to AI systems, notably in conjunction with Nvidia’s GPUs in AI data centers, underscoring Micron’s pivotal role in the AI infrastructure landscape.