Micron forecasts surging revenue as computer memory demand for AI remains high

Micron Technology recently announced impressive fiscal first-quarter results that surpassed Wall Street's expectations for both revenue and earnings per share. Following the announcement, Micron's stock experienced a notable increase of 5% in after-hours trading. Looking ahead, Micron has projected an anticipated revenue of approximately $18.70 billion for the upcoming quarter, significantly higher than the $14.20 billion forecast by analysts at LSEG. The company's adjusted earnings per share are expected to reach around $8.42, far exceeding the estimated $4.78. CEO Sanjay Mehrotra highlighted the substantial growth in AI data center capacity, which has led to a marked increase in the demand for high-performance memory and storage solutions. He reported that the demand for server units has seen a robust rise, growing in the "high teens" for 2025. In the first quarter, Micron recorded a net income of $5.24 billion, translating to $4.60 per share. This is a significant jump from the previous year's $1.87 billion or $1.67 per share. Overall, the company experienced a remarkable 57% increase in revenue compared to the same quarter last year. As a key player in manufacturing memory and solid-state storage for computers, Micron has been navigating a supply shortage in recent months, driven by the booming demand for chips essential for artificial intelligence infrastructure. The company's shares have surged by 168% in 2025, reflecting this heightened interest. Micron is among the few manufacturers producing high-bandwidth memory crucial for AI applications, including its memory utilized in AMD's latest AI chips. The company reported $5.28 billion in cloud memory sales, which has seen a doubling year-over-year, alongside $2.38 billion in core data center sales—a modest 4% increase from the previous year. Both sectors benefited from elevated pricing. In a strategic move, Micron announced earlier this month that it would cease direct sales of memory and other components to consumers, aiming to prioritize supply for AI chips and data centers.