Micron forecasts surging revenue as memory demand for AI stays strong
Micron Technology offices in San Jose, California, USA on Tuesday, December 16, 2025.
David Paul Morris | Bloomberg | Getty Images
Micron Technology reported results of the first quarter of the fiscal year Data released Wednesday beat Wall Street expectations for sales and earnings per share and provided a strong forecast for the current quarter.
Micron shares rose more than 7% in extended trading.
Here’s how the memory maker stacks up against LSEG consensus predictions:
- earnings per share: Estimated $3.95 vs. adjusted $4.78.
- Revenues: $13.64 billion vs. $12.84 billion estimated
Micron said it expects second-quarter revenue of about $18.70 billion in the current quarter, versus LSEG’s expectation of $14.20 billion. He said adjusted earnings per share would be about $8.42, missing expectations of $4.78 per share.
“This growth in AI data center capacity is driving a significant increase in demand for high-performance and high-capacity memory and storage. Server unit demand has strengthened significantly,” Micron CEO Sanjay Mehrotra said on an earnings call with analysts. he said, adding that the company sees server units growing in the “high teens” by 2025.
Micron generated net income of $5.24 billion, or $4.60 per share, in the first quarter, compared to $1.87 billion, or $1.67 per share, in the same period last year. Total revenue increased by 57% compared to the previous year.
Micron makes memory and solid-state storage for computers. These semiconductors have been in short supply in recent months due to the need for large quantities of both types of chips due to the explosion of AI infrastructure.
Micron annual stock chart.
High demand for memory has caused Micron shares to rise 168% in 2025.
Micron is one of three companies that produce the high-bandwidth memory needed for artificial intelligence applications. For example, Micron’s memory is used in large amounts. AMD‘s latest AI chips.
Micron said it generated $5.28 billion in cloud memory sales, doubling year-over-year. The chipmaker reported $2.38 billion in core data center sales, up just 4% year over year. The company said both business units were hit by higher prices.
Earlier this month, Micron said it would stop selling memory and other parts directly to consumers to preserve supply for AI chips and data centers.
