Micron Technology, Inc. (NASDAQ:MU) shares surged 15.84% in after-hours trading on Wednesday after the memory-chip maker delivered a blowout quarterly report and issued guidance that significantly exceeded Wall Street expectations.
Micron Crushes Estimates As AI Demand Drives Growth
Micron reported third-quarter revenue of $41.46 billion, topping analyst estimates of $35.59 billion, while adjusted earnings came in at $25.11 per share, ahead of expectations for $20.63 per share.
Total revenue jumped approximately 346% from a year earlier.
The company also issued a strong forecast for the fourth quarter, projecting revenue of $50 billion, plus or minus $1 billion, and adjusted earnings of $31 per share, plus or minus $1.
Analysts had been expecting revenue of $42.95 billion and earnings of $25.50 per share.
Micron’s board also declared a quarterly dividend of 15 cents per share.
Analysts Point To Years Of AI-Driven Demand
Following the results, Deepwater Asset Management’s managing partner Gene Munster said the report suggests the AI infrastructure buildout remains in its early stages.
"Results and guide show we are still early in the AI buildout," Munster wrote on X.
Munster also pointed to comments from Micron’s chief financial officer indicating the company expects to remain supply-constrained through fiscal 2028.
He described the remarks as a significant positive for the AI trade and evidence that demand could continue to outpace supply for the next two years.
Investor Gary Black echoed that view, noting Micron "blew away" third-quarter estimates and guided materially above consensus expectations.
Black said shortages in memory chips have persisted as demand from AI, data centers, smartphones and other markets continues to exceed available supply.
Micron ‘Annihilated Expectations,’ Says Daniel Newman
Futurum Group CEO Daniel Newman was also among the bullish voices following the report.
"$MU didn’t just beat. It annihilated expectations," Newman wrote on X, while describing the company’s projected gross margins of roughly 86% as "insane."
Moor Insights & Strategy CEO Patrick Moorhead struck a more cautious tone.
While acknowledging strong demand for high-bandwidth memory and AI-related products, he warned that memory markets have historically been cyclical and could face pressure if industry supply eventually catches up with demand.
"This is my ninth memory cycle. Constructive on the cycle, skeptical on the trade," he wrote on the social media platform.
Benzinga Edge Rankings place Micron in the 99th percentile for Momentum, reflecting robust gains across short, medium and long-term time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: gguy on Shutterstock.com
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