Micron Jumps 15% After $41.46 Billion Quarter Quells AI Bubble Fears

Micron Says Memory Shortage Could Last Beyond 2027

Micron Technology Inc. soothed fears of a slowdown in artificial-intelligence memory demand after reporting quarterly results and guidance that beat market expectations.

The US memory-chip maker said AI-driven supply shortages could persist beyond 2027. Its shares jumped more than 15% in after-hours trading.

Micron said June 24 that fiscal third-quarter revenue for the March-to-May period rose 345.7% from a year earlier to $41.46 billion.

Adjusted earnings per share were $25.11, topping market estimates. Operating profit came to $33.318 billion, while net income was $28.243 billion, or $24.67 a share.

By business segment, cloud memory, which includes high-bandwidth memory, posted the highest revenue at $13.77 billion. Core data center revenue was $11.52 billion, mobile client revenue was $11.52 billion, and automotive and industrial revenue was $4.63 billion.

The rise in memory demand that began with AI data centers is now spreading to conventional data centers, mobile devices, and automotive and industrial markets.

For the fourth quarter, covering June through August, Micron forecast revenue of $50 billion. That exceeded the market estimate of $43.58 billion. The company also projected earnings per share of $31, plus or minus $1, above the consensus estimate of $25.84.

Micron also said the imbalance between memory supply and demand tied to the expansion of AI will last longer than previously expected.

Chief Executive Officer Sanjay Mehrotra said record third-quarter results and an even stronger fourth-quarter outlook underscore the strategic importance of memory in the AI era. The company is increasing investment across technology, products, and its supply chain to meet rising customer demand, he added, and long-term customer partnerships are helping support the durability and predictability of performance.

Mehrotra added that tightness in the memory market will continue beyond 2027 because of rising AI demand and structural supply constraints. Supply conditions may gradually improve in 2028, but it remains unclear when supply will catch up with growing demand.

Micron, a major supplier of memory used in Nvidia Corp.'s AI chips, is the only advanced memory manufacturer in the US. The company said it plans to raise fourth-quarter capital expenditures to about $10 billion, above the market estimate of $8.89 billion.

Micron shares rose more than 15% in after-hours trading following the earnings report and upbeat outlook.

Kim Yeon-ji, Hankyung.com reporter kongzi@hankyung.com