Micron Reports Strong Q4 Results, Raises Outlook on AI-Driven Memory Demand
Quick Look
- Micron reported better-than-expected Q4 results with adjusted EPS of $33.42 vs. $31.61 expected and revenue of $54.23 billion vs. $51.07 billion forecast, driven by surging AI infrastructure demand.
- The company raised its Q1 outlook to $61.5 billion in revenue and $38.15 adjusted EPS, citing historic demand for HBM used in AI workloads.
- Micron is investing $250 billion in new U.S. campuses, while competitors SK Hynix and Samsung expand in South Korea.
AI-generated summary
Why It Matters
Micron is a U.S.-based semiconductor company specializing in memory and storage products. It has benefited from surging demand for high-bandwidth memory (HBM) driven by AI workloads from companies like Nvidia and AMD. The global memory chip market has faced supply constraints, driving up prices and revenues.
Micron reported better-than-expected quarterly results on Wednesday as the memory maker continues to benefit from soaring demand for AI infrastructure. The stock rose slightly in extended trading.
Here's how the company did relative to LSEG consensus:
Earnings per share: $33.42 adjusted vs. $31.61 expected
Revenue: $54.23 billion vs. $51.07 billion expected
Revenue almost quadrupled in the fiscal fourth quarter from $11.32 billion a year earlier, according to a statement.
For the fiscal first quarter, Micron said it expects revenue of about $61.5 billion and adjusted earnings per share of $38.15. Analysts polled by LSEG had expected $35.40 in adjusted earnings per share on $57 billion in revenue.
Micron's stock has soared more than 500% in the past year, benefiting from a worldwide supply crunch caused by historic levels of demand for memory chips needed for artificial intelligence models and workloads. The shortage has led to a spike in memory costs and resulted in increased prices for consumer electronics like Apple's iPads and MacBooks.
Micron is the only U.S.-based maker of high-bandwidth memory, HBM, made up of stacks of general-purpose dynamic random-access memory, or DRAM. Fourth-quarter DRAM revenue increased 343% from a year ago to $39.8 billion, representing 73% of total sales.
Net income in the latest quarter climbed to $37.7 billion, or $32.87 per share, from $3.2 billion, or $2.83 per share a year ago.
Advanced graphics and central processors from chip giants like Nvidia and AMD need increasing amounts of HBM to handle AI workloads, and the world's leading providers can't make enough.
That's why Micron is investing $250 billion to build two new campuses for making HBM. The largest broke ground in Clay, New York, in January, while its first new fab in Boise, Idaho, is scheduled to come online next year.
HBM leaders SK Hynix and Samsung are also in the midst of massive new HBM factory buildouts in their home country of South Korea. Micron holds the smallest HBM market share of the three, but its market cap has still topped $1.2 trillion.
Micron CEO Sanjay Mehrotra participated in a summit on AI regulation hosted by President Donald Trump on Tuesday, days after attending a White House dinner with Chinese President Xi Jinping on his first visit to the U.S. in more than a decade.
What to Watch
AI outlook — possibilities, not facts
Micron's Q1 revenue will exceed $61.5 billion
Likely · Within weeks
Micron's adjusted EPS will exceed $38.15 in Q1
Likely · Within weeks
Global HBM demand will continue to outstrip supply through 2025
Likely · Within months
Open Questions
- What is the timeline for full ramp of Micron's new HBM fabs?
- How will U.S. CHIPS Act funding interact with Micron's $250B investment?
- What specific AI regulation topics were discussed at the Trump-hosted summit?
- How will Micron's market share evolve against SK Hynix and Samsung?
