Micron (MU) reported fiscal fourth quarter earnings outcomes after the bell Tuesday that surpassed Wall Avenue’s expectations — a optimistic sign for the AI commerce and for buyers hoping the chipmaker’s inventory can maintain its current upswing.
Micron’s fiscal fourth quarter income of $11.3 billion was forward of the $11.15 billion anticipated by analysts polled by Bloomberg. The Idaho-based reminiscence chipmaker — whose semiconductors are used alongside Nvidia’s chips in AI information facilities — noticed adjusted earnings per share of $3.03 for the three months ending Aug. 28, greater than the $2.84 projected.
Micron’s efficiency additionally surpassed its boosted outlook for the quarter offered in August.
The beat was fueled by the AI information heart growth, firm executives mentioned, with information facilities representing 40% of the chipmaker’s complete income within the fourth quarter.
The inventory briefly climbed 2% following the ends in after-hours buying and selling to hit $171.50, above its all-time intraday excessive final week, however later pared positive aspects.
Micron’s steerage for its 2026 fiscal first quarter was additionally above expectations. The corporate guided for first quarter income between $12.2 billion and $12.8 billion, greater than the $11.9 billion anticipated by analysts tracked by Bloomberg. The chipmaker mentioned it expects first quarter adjusted earnings per share to fall between $3.60 and $3.90, forward of the $3.05 projected.
“Over the approaching years, we anticipate trillions of {dollars} to be invested in AI, and a good portion will probably be spent on reminiscence,” CEO Sanjay Mehrotra mentioned in a name with analysts following the corporate’s outcomes. “As the one US-based producer of reminiscence, Micron is uniquely positioned to profit from the AI alternative forward.”
Micron has been certainly one of plenty of tech giants deepening investments within the US amid strain from the Trump administration. The agency in June mentioned it can make investments $200 billion in its US reminiscence chipmaking services.
The corporate is certainly one of three main reminiscence chipmakers. Its rivals are Korea-based SK Hynix (000660.KS) and Samsung Electronics (005930.KS), however the latter has fallen behind within the AI race.
Micron’s DRAM (dynamic random entry reminiscence) chips are used for short-term reminiscence storage in every little thing from private computer systems to AI information facilities and traditionally have accounted for almost all of the corporate’s income.
One type of Micron’s DRAM tech, its HBM (excessive bandwidth reminiscence) chips, which embody a number of vertically stacked DRAM semiconductors, have been essential to the AI buildout and are used alongside GPUs (graphics processing models) in Nvidia’s (NVDA) AI programs for information facilities.
