Micron's revenue more than quadrupled in the fiscal third quarter, the company said on Wednesday, as the memory maker continued to benefit from soaring demand tied to the artificial intelligence boom. The stock rose about 10% in extended trading.
Here's how the memory maker did versus LSEG consensus estimates:
- Revenue: $41.46 billion versus $35.84 billion estimated
- EPS: $25.11, adjusted, versus $20.78 estimated
Revenue increased from $9.3 billion a year earlier, Micron said in a statement. For the current quarter, the company 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.
Memory prices have skyrocketed in the last couple years as AI chips eat up all the production capacity of the small crop of vendors. With data center demand increasing by the day, prices are also rising for memory used in smartphones, laptops and other gadgets.
That's turned Micron into a Wall Street darling as its technology is essential for chips made by Nvidia and Google, as well as the servers that house those companies' processors. Micron's stock price is up roughly 700% over the past year, lifting the company's market cap past $1 trillion.
Micron said on Wednesday that it expects tight conditions for memory to persist beyond 2027, due to AI-driven demand. The company also said that it has signed 16 long-term agreements with customers such as data center operators and automakers that lock in sales for a period of three to five years.
Micron's gross margin, the profit left after accounting for the cost of goods sold, jumped to 84.9% in the third quarter from 74.9% in the prior period and 39% a year earlier. Micron's margins topped analyst estimates.
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.
While all four of Micron's business units saw revenue multiply, the most explosive growth was in the core data center business, where sales climbed more than sevenfold to $11.5 billion from $1.53 billion in the same period a year ago. In addition to memory, Micron also recorded over $5 billion in data center solid state drive revenue, the company said in a presentation.
Cloud memory was up over 300% to $13.77 billion.
Sales for memory for devices also grew as prices rose. The company's mobile and client business unit saw revenue grow over 250% to $11.52 billion, and even memory for automotive and embedded applications more than quadrupled to $4.63 billion in sales.
The company said shareholders will receive a 15 cent dividend in July.
WATCH: Micron earnings focus on gross margins and 2027 allocations
