Micron Technology soars as AI boom drives memory chip shortage and record earnings
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The AI boom comes to memory chips. What analysts are saying after Micron's blowout quarter
Micron Technology is likely to get a big boost over the coming year if its blockbuster fiscal first-quarter results are anything to go by, even as some investors shrink from the AI trade, according to several Wall Street researchers. Micron shares rose almost 16% in early trading Thursday after the
[2]
Micron crushes expectations on earnings, revenue and guidance amid soaring AI memory demand - SiliconANGLE
Micron crushes expectations on earnings, revenue and guidance amid soaring AI memory demand Memory chipmaker Micron Technology Inc. crushed Wall Street's expectations on earnings and revenue and offered jaw-dropping guidance for the current quarter as it delivered its latest financial results,
[3]
Not All AI Stocks Are Falling These Days. Micron Is Rising on Strong Earnings
Worries about an AI bubble have weighed on the tech sector lately. Micron is still riding the AI boom higher. Shares of the memory chip maker were up over 5% in extended trading Wednesday after the company posted earnings that blew past analysts' estimates, driven by growing demand for AI
[4]
Micron surges as global memory chip shortage boosts profit forecast
Micron Technology shares saw a significant jump. The company issued a strong profit forecast. This is due to a worldwide shortage of memory chips. Demand from AI data centres is very high. This shortage is boosting prices for memory chips. Micron expects memory markets to remain tight past 2026.
[5]
Micron: The 'Age Of AI' Winner With 'Meaningful Upside' - Micron Technology (NASDAQ:MU)
Micron Technology (NASDAQ:MU) shares soared on Thursday after the company reported first-quarter financial results and guidance. Analysts see further upside and are raising their price targets. Micron Technology stock is charging ahead with explosive momentum. What's behind MU gains? The Micron
[6]
What AI Bubble? This Chip Stock Just Said the AI Boom Is Alive and Well | The Motley Fool
The memory-chip leader crushed analyst estimates in its after-hours report on Wednesday, offering a forceful case that the AI boom is alive and thriving. Micron's revenue jumped 57% in the first quarter, accelerating from its previous quarter to $13.6 billion, which was well ahead of expectations
[7]
Micron Valuation Hinges on Whether the $18.7B Guide Converts Cleanly Into Results | Investing.com UK
NASDAQ:MU trades at $270.39 (+1.68%) with $268.29-$277.29 intraday range and $277.29 as the 52-week high inside a $61.54-$277.29 yearly band. The stock is sitting on a $302.54B market cap with P/E 25.71 and a 0.17% dividend yield. The market is not rewarding "recovery optics" anymore -- this price
[8]
Micron: Why Is It Set Up to Be 2026's Breakout AI Stock | Investing.com UK
Micron Technology (MU) has officially signaled the start of a massive fiscal year, delivering what analysts are calling "monster numbers" for its first quarter of fiscal 2026. With shares jumping over 13% in extended trading following the report, the memory giant has proven that the artificial
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Micron Logs Sales Jump, Sees Further Growth as AI Demand Outpaces Supply -- Update
Micron Technology expects growth to soar higher in the coming months as AI developers scramble for a tight supply of memory-storage products. The Boise, Idaho, memory provider on Wednesday raised its outlook for demand growth for two of its key products and shared revenue guidance well above Wall
[10]
Micron shares surge amid sharply higher revenue forecasts on AI-led memory demand By Investing.com
Investing.com -- Micron Technology forecasts a sharp jump in revenue and earnings for the current quarter as higher memory prices, demand tied to AI workloads drove record first-quarter results. Shares of Micron were up about 6% in extended trading. The memory chipmaker posted non-GAAP earnings of
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Micron Technology delivered blockbuster fiscal first-quarter results, crushing Wall Street expectations with $4.78 earnings per share on $13.64 billion revenue. The memory chip maker's stock surged nearly 16% as CEO Sanjay Mehrotra forecasted continued growth through 2026, driven by an acute shortage of high-bandwidth memory chips essential for AI infrastructure. Analysts raised price targets to $300-$500, citing the memory super-cycle.
Micron Technology Crushes Analyst Expectations Amid AI Boom
Micron Technology delivered a stunning fiscal first-quarter performance that sent its stock soaring nearly 16% in early trading, as the Idaho-based semiconductor maker rode the wave of soaring AI memory demand to record-breaking results
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. The company reported adjusted earnings of $4.78 per share on revenue of $13.64 billion, easily surpassing analyst expectations of $3.95 per share on $12.84 billion2
. Revenue jumped 57% year-over-year, while net income soared to $5.42 billion, up from just $1.87 billion in the year-ago period2
. These strong earnings and revenue figures reflect the company's position as an essential enabler in the age of artificial intelligence.
Source: Motley Fool
Global Memory Chip Shortage Drives Pricing Power
The worldwide supply crunch of memory chips has created a perfect storm for Micron Technology, with demand from AI data centers significantly outpacing supply. CEO Sanjay Mehrotra told analysts that "server unit demand has strengthened significantly," with growth expected in the "high teens" this year
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. The global memory chip shortage has boosted pricing across the industry, helping Micron achieve a GAAP gross margin of 56% in the first quarter, up from approximately 38% a year earlier3
. The company expects gross margin to climb as high as 68% in the current quarter, demonstrating the pricing power created by supply chain tightness3
.
Source: Benzinga
High Bandwidth Memory (HBM) Market Expansion
Micron Technology stands as one of only three major suppliers of High Bandwidth Memory (HBM) chips globally, alongside South Korea's Samsung Electronics and SK Hynix
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. These specialized memory chips have become essential components for training and deploying generative AI models, with customers including Nvidia and Advanced Micro Devices requiring vast amounts of memory for their graphics processing units2
. Mehrotra forecasts the HBM market to grow from $35 billion this year to $100 billion by 2028, with supply expected to fall "substantially short" of demand throughout that period2
. During the quarter, Micron generated $5.2 billion in revenue from cloud memory sales, up more than 50% annually, while core data center sales reached $2.38 billion, up 4% year-over-year2
.Related Stories
Wall Street Raises Price Targets as Memory Super-Cycle Extends
The bullish outlook drove Wall Street firms to significantly raise their estimates, with analysts pushing increased price targets on the stock ranging from $300 to $500
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. Bank of America upgraded Micron to buy from neutral, raising its price target to $300 from $250, citing the durability of the memory super-cycle persisting into 2026 on restrained supply additions1
. Rosenblatt analyst Kevin Cassidy set the highest price target at $500, using a 14x price-to-earnings ratio and stating, "We continue recommending MU for the increasing importance of memory and storage in the Age of AI"5
. JPMorgan's Harlan Sur raised his target to $350, noting that "the fundamental setup (pricing/demand) remains favorable through CY26 and into CY27"5
.Forward Guidance Signals Continued Momentum
Micron Technology provided jaw-dropping guidance for its fiscal second quarter, forecasting earnings of $8.42 per share on revenue of $18.7 billion at the midpoint, crushing Wall Street expectations of $4.78 per share on $14.2 billion
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. Mehrotra told analysts, "Our outlook reflects substantial records across revenue, gross margin, earnings-per-share and free cash flow, and we anticipate our business performance to continue strengthening through fiscal 2026"2
. The company has increased its 2026 capital expenditure plans to $20 billion as it ramps up investments to meet booming demand4
. Micron shares have surged more than 160% in 2025, making it one of the top-performing stocks in the S&P 500 for the year3
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. The memory shortage has become so acute that Micron decided to stop selling products directly to consumers to preserve its supply of DRAM and NAND chips for AI and data center customers2
. While analysts differ on how long this memory super-cycle might last, Wall Street unanimously agrees that supply shortages could extend beyond Micron's estimates, with some expecting tightness to persist well into 20274
.
Source: SiliconANGLE
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