Micron’s AI Boom Just Got Bigger As Revenue Soars 379%
Micron Technology posted $54.23 billion in income for its fiscal fourth quarter, up 379% from a 12 months earlier. It additionally forecast $61.5 billion for the present quarter, properly above Wall Street estimates.
Micron makes reminiscence chips, the components that maintain knowledge whereas synthetic intelligence (AI) processors work on it. Demand from AI knowledge facilities lifted all 4 of its enterprise models.
Micron Revenue Beats Estimates by $3 Billion
Analysts had anticipated about $51.1 billion for the quarter ended Sept. 3. Micron cleared that by greater than $3 billion.
Adjusted earnings reached $33.42 per share, additionally above forecasts. Net revenue underneath normal accounting guidelines hit $37.70 billion, up from $3.20 billion a 12 months earlier.
Profitability shifted much more. Micron saved 87 cents of each gross sales greenback after manufacturing prices, in contrast with about 46 cents a 12 months in the past.
Data heart chips led the soar. Core Data Center income rose to $18 billion from $1.58 billion, whereas Cloud Memory introduced in $16.28 billion.
Customers Prepay $12.7 Billion to Lock In Supply
Micron’s filings present clients deposited $12.75 billion underneath long-term provide contracts throughout fiscal 2026. Most of that cash arrived within the remaining quarter.
CEO Sanjay Mehrotra tied the outlook to these offers.
“…our Strategic Customer Agreements present added confidence within the sturdiness of Micron’s monetary efficiency,” he stated in a statement.
For the fiscal first quarter of 2027, Micron guided $61.5 billion, plus or minus $1.5 billion. Analysts had pencilled in $57.02 billion. However, its gross margin information of about 86.25% sat barely beneath the 86.4% estimate.
Micron Stock Barely Moves as Burry Bets Against It
Shares barely reacted. Micron closed at $1,065.08 and traded close to $1,068.90 after hours, up 0.36%, shortly after the discharge.
Some traders stay unconvinced. Michael Burry, the “Big Short” investor, this week disclosed put options on Micron, a wager that income if the inventory falls.
Chip shares additionally slid earlier this month on AI slowdown crash fears. Meanwhile, analysts handed out new Micron price targets final week as Taiwan chip exports hit a document.
Management discusses the outlook on its earnings name at 4:30 p.m. EDT on Wednesday.
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