Micron FQ4 sales up 47% on soaring AI demand
What’s happening:-
Shares of Micron Technology gained in after-hours trading on Tuesday, following the release of the company’s results for its fiscal fourth quarter.
What happened:-
The memory chip maker posted better-than-expected sales and earnings for the latest quarter.
Micron also issued an upbeat revenue outlook for the first quarter amid rising demand for AI hardware.
How were the results:-
The Boise, Idaho-based company reported strong sales growth for its fiscal fourth quarter ended August 28, 2025.
Revenues jumped around 46% year-over-year to $11.32 billion, beating Wall Street expectations of $11.22 billion Adjusted earnings surged to $3.03 per share, topping consensus estimates of $2.86 per share.
Micron received income from HBM
Why it matters:-
Micron supplies high-bandwidth memory (HBW) chips for some of the most popular semiconductors of Nvidia, the world’s most valuable company. Soaring demand for AI datacentre chips helped Micron raise prices and volumes of its advanced memory chips.
Micron’s HBM revenue jumped to around $2 billion in the fourth quarter, indicating an annualised run rate of almost $8 billion, CEO Sanjay Mehrotra said during the earnings call. The company is on track to locking in agreements that would sellout its HBM chips for 2026 in the upcoming months.
“In fiscal 2025, we achieved all-time highs across our data centre business and are entering fiscal 2026 with strong momentum and our most competitive portfolio to date. As the only U.S.-based memory manufacturer, Micron is uniquely positioned to capitalize on the AI opportunity ahead,” Mehrotra added.
Wall Street's AI-Powered Rise
The company’s board announced a quarterly dividend of 11.5 cents per share, payable on October 21 to stockholders of record as of October 3.
Micron guided to revenues of $12.5 billion, plus or minus $300 million, for the fiscal first quarter, higher than market estimates of $11.93 billion. The company also projected adjusted earnings of $3.75 per share, plus or minus 15 cents, beating consensus of $3.04 per share.
Micron Technology
How shares responded:-
Micron’s shares rose 0.4% to $167.13 in the extended trading hours on Tuesday. The stock has jumped around 43% over the past month.
What to watch:-
Investors will continue monitoring AI investments by the tech giants, with Micron’s stock almost doubling in value year to date.