Micron Smashes Expectations as it Prepares to Spend Big

Micron Technology plans to invest heavily in production projects as demand for memory chips surges, a trend that helped it triple second-quarter revenue.

Micron forecasts $33.5 billion in third-quarter sales, an 81% gross margin, and adjusted EPS of $19.15—representing a 903% increase from the previous year. (Photo: Micron Technologies Facebook)

The quarterly results beat expectations, as did guidance for the third quarter, when the company expects to accelerate earnings per share amid the AI boom, Adam Levine and Liz Moyer reported for Barron’s Daily.

For the second quarter, Micron reported adjusted earnings of $12.20 per share and revenue of $23.9 billion.

It forecasts $33.5 billion in third-quarter sales, an 81% gross margin, and adjusted EPS of $19.15—representing a 903% increase from the previous year.

CEO Sanjay Mehrotra opened the earnings call with a strong note, saying the third-quarter revenue guidance “exceeds the full-year revenue for every year in our company’s history through fiscal 2024.”

He added, “We anticipate exceptional records across revenue, gross margin, EPS, and free cash flow.”

The AI data center boom has created a severe memory shortage, particularly at the high end of memory and storage chips. Sales to data center customers rose 181% during the quarter, with ripple effects across the supply chain leading to steep price increases for all types of memory.

Sales to non-data center customers climbed 219% year over year.

For more than a decade, Micron, along with Samsung and SK Hynix, has operated in a cyclical and commoditized market tied to demand for PCs and smartphones.

The company told analysts it will spend more than $25 billion this fiscal year through August, primarily on facilities—higher than expected. It also said fiscal 2027 construction spending will be about $10 billion higher than in 2026.