:max_bytes(150000):strip_icc()/GettyImages-2247416070-a4f96f18b59c440cbbc83948c94d7668.jpg "Not All AI Stocks Are Falling These Days. Micron Is Rising on Strong Earnings")
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Key Takeaways
- Micron Technology posted earnings that topped analysts’ estimates, sending shares higher in extended trading Wednesday.
- CEO Sanjay Mehrotra said growing AI demand drove record results for the memory chipmaker and Nvidia supplier.
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 hardware.
Micron Technology (MU) posted adjusted earnings per share of $4.78 for the fiscal first quarter, well above the $3.96 analysts surveyed by Visible Alpha were looking for. Its revenue jumped nearly 60% year-over-year to a record $13.64 billion, also exceeding expectations.
Why This Matters to Investors
As a supplier for leading AI chipmakers including Nvidia and Advanced Micro Devices, Micron has seen strong momentum in its data center business this year, helping it earn a reputation as a winning “pick-and-shovel” play for the AI trade.
“Micron delivered record revenue and significant margin expansion at the company level and also in each of our business units,” said CEO Sanjay Mehrotra, who called the company an “essential AI enabler.”
Micron projected adjusted earnings per share of $8.22 to $8.62 on revenue of $18.3 billion to $19.1 billion for the second quarter, well ahead of consensus estimates.
Micron’s stock, though well off record highs seen earlier this month, has largely avoided the worst of the recent slump in the AI sector. It’s continued to benefit from a shortage in the memory market, supporting stronger pricing and higher margins. Micron’s GAAP gross margin jumped to 56% in the first quarter, up from around 38% a year earlier, with the company saying it expects that to climb as high as 68% in the current quarter.
Shares of Micron have nearly tripled in value in 2025 through Wednesday’s close, making it one of the top-performing stocks in the S&P 500 for the year.
