Micron Technology reported one of the largest earnings beats in semiconductor industry history, posting record revenue, profit, and forward guidance as demand for AI memory chips continued to accelerate.
The company reported quarterly revenue of $41.46 billion, well above Wall Street expectations of $36.3 billion. Adjusted earnings per share reached $25.11 versus consensus estimates of $21.05, while gross margin expanded to 84.6%, up sharply from 37.7% a year earlier.
Shares climbed roughly 15% in after-hours trading following the results.
AI Memory Demand Continues to Surge
Micron attributed its record performance to booming demand for high-bandwidth memory (HBM) used in AI accelerators and hyperscale data centers.
The company also issued guidance well above analyst expectations, forecasting fourth-quarter revenue of approximately $50 billion and adjusted earnings per share of $31.
Management said both HBM3E and HBM4 production are fully sold out through the end of 2027, with customer demand already extending into 2028.
Micron also announced $22 billion in multi-year customer agreements that include take-or-pay contracts, cash deposits, and minimum pricing commitments.
AI Infrastructure Spending Shows No Signs of Slowing
The results reinforce continued strength across the AI semiconductor supply chain, where memory has become one of the fastest-growing segments.
Strong demand for HBM chips reflects ongoing investment in AI infrastructure by cloud providers and technology companies building next-generation AI systems.
Analysts noted that Micron generated more quarterly profit than Nvidia did roughly a year ago, highlighting the rapid expansion of the AI memory market.
The broader takeaway is that Micron has emerged as one of the biggest beneficiaries of the global AI boom, with record financial performance and long-term customer commitments providing further evidence that demand for advanced memory remains exceptionally strong.
