Micron Forecasts Strong Earnings on AI Demand; Shares Rise 7%

Micron Technology forecast second-quarter adjusted profit at nearly double what Wall Street analysts expected, as prices for memory chips surge amid tight supplies and booming demand from artificial intelligence data centers. Stephen Nellis and Juby Babu reported for Reuters.

Micron Technology forecast second-quarter adjusted profit at nearly double what Wall Street analysts expected. (Photo: Micron Technology Facebook)

Shares of the Boise, Idaho–based company rose 7 percent in extended trading following the forecast. Micron said it expects adjusted profit of $8.42 per share, plus or minus 20 cents, compared with analyst estimates of $4.78 per share, according to LSEG data.

Micron’s chips are fundamental components in everything from data center servers and personal computers to smartphones and vehicles.

The company is also one of only three major suppliers—along with South Korea’s SK Hynix and Samsung Electronics—of high-bandwidth memory (HBM) chips, which are essential for training and deploying generative AI models.

In a conference call with investors, Micron CEO Sanjay Mehrotra said he expects memory markets to remain tight beyond 2026 and that, in the medium term, the company will be able to meet only about half to two-thirds of demand from several key customers.

Reuters has previously reported that a global memory chip crunch is already pressuring smartphone makers.