Micron Logs Sales Jump, Sees Further Growth as AI Demand Outpaces Supply — Update

By Katherine Hamilton

Micron Technology expects growth to soar higher in the coming months as AI developers scramble for a tight supply of memory-storage products.

The Boise, Idaho, memory provider on Wednesday raised its outlook for demand growth for two of its key products and shared revenue guidance well above Wall Street estimates. Chief Executive Sanjay Mehrotra said that supply isn't keeping up with high levels of demand, and that dynamic shows no signs of slowing.

"We believe that the aggregate industry supply will remain substantially short of the demand for the foreseeable future," Mehrotra told analysts on a call.

In the current second quarter, Micron expects revenue to be $18.7 billion and adjusted earnings per share of $8.42, both at the midpoint. Analysts were projecting sales of $14.33 billion with adjusted earnings of $4.78 a share.

Shares rose 5.7% to $238.53 in after-hours trading. Through the close, the stock had nearly tripled in value this year.

Growth in AI data center capacity is driving a significant increase in demand for high-performance and high-capacity memory and storage, Mehrotra said. Management now expects server unit growth to be in a high-teens percentage range, up from the 10% growth it forecast in its September earnings call.

"Over the last few months, our customers' AI data center build-out plans have driven a sharp increase in demand forecasts for memory and storage," Mehrotra said.

Demand for two of its main memory products, DRAM and NAND, has also gone up since September. Micron now expects DRAM demand to increase in the low 20% range, up from the high teens, and NAND demand to increase in the high teens, up from the low- to mid-teens, Mehrotra said.

Micron expects to increase DRAM and NAND bit shipments by about 20% in calendar 2026, he said.

Memory is now essential to AI's cognitive functions, which is making it a crucial asset that dictates how well a product performs, Mehrotra said. System capabilities heavily rely on advanced memory for processing, which is necessary for products such as self-driving cars and advanced medical diagnostics.

"Micron is in the best competitive position in its history and is one of the semiconductor industry's biggest enablers of AI," Mehrotra said.

Profit in Micron's fiscal first quarter, which ended in late November, was $5.24 billion, or $4.60 a share, up from $1.87 billion, or $1.67 a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were $4.78, ahead of the $3.96 anticipated by analysts, according to FactSet.

Revenue rose 57% to $13.64 billion. Analysts surveyed by FactSet forecast revenue of $12.91 billion.

Sales from Micron's cloud memory business made up $5.28 billion of that total.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

Corrections & Amplifications

This article was corrected at 6:22 p.m. ET, to reflect that Micron Technology expects growth to soar higher in the coming months. The original article incorrectly said Micron Technologies expects growth to soar.

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December 17, 2025 18:07 ET (23:07 GMT)