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Micron Technology delivered a blockbuster set of second-quarter results on Wednesday, underscoring the strength of demand for memory chips driven by artificial intelligence and data center expansion.<\/p>\n
The company reported adjusted earnings per share of $12.20, far exceeding Wall Street expectations of about $9.19.<\/p>\n
Revenue surged to roughly $23.9 billion, well above consensus estimates near $20 billion and marking a nearly threefold increase from the same period last year.<\/p>\n
However, Micron stock fell by 2% in after market trading along with the broader market as the Federal Reserve held rates and Fed chief Jerome Powell’s comments indicated concerns about persistent inflation.<\/p>\n
AI demand drives record performance<\/p>\n
Micron\u2019s results highlight the powerful impact of the AI investment boom on the memory chip industry. <\/p>\n
Demand for high-performance DRAM and NAND chips used in data centers and AI workloads has outpaced supply, pushing both volumes and pricing higher.<\/p>\n
Chief Executive Sanjay Mehrotra pointed to the structural shift underway in the market.<\/p>\n
“In the AI era, memory has become a strategic asset for our customers, and we are investing in our global manufacturing footprint to support their growing demand,” Mehrotra said.<\/p>\n
The company\u2019s revenue nearly tripled from $8.05 billion a year earlier, while net income surged to about $13.8 billion. <\/p>\n
Gross margins also expanded sharply, reaching over 74%, reflecting strong pricing power and operational efficiency.<\/p>\n
Growth was broad-based across segments. <\/p>\n
Cloud memory revenue rose more than 160% to $7.75 billion, while the mobile and client business also posted significant gains, climbing to $7.71 billion from $2.24 billion a year ago.<\/p>\n
The surge in demand is closely tied to the increasing memory requirements of advanced AI chips, particularly those used in data centers.<\/p>\n
Supply constraints support pricing and margins<\/p>\n
The company\u2019s strong performance is being supported by tight supply conditions across the memory market.<\/p>\n
Industry capacity constraints, particularly in high-bandwidth memory (HBM), have limited supply growth even as demand continues to accelerate. <\/p>\n
Micron and its peers, including Samsung and SK Hynix, are ramping production, but no significant new capacity is expected before mid-2027.<\/p>\n
\u201cThe step-up in our results and outlook are the outcome of an increase in memory demand driven by AI, structural supply constraints and Micron\u2019s strong execution across the board,\u201d Mehrotra said.<\/p>\n
The imbalance between supply and demand has driven a sharp increase in memory prices, contributing to the company\u2019s strong revenue growth and margin expansion.<\/p>\n
Analysts have noted that the industry may be entering a new phase, where AI-driven demand reduces the traditional cyclicality that has historically defined the memory market.<\/p>\n
Strong outlook <\/p>\n
Micron also gave a strong forward guidance.<\/p>\n
For the current third quarter, the company expects revenue of about $33.5 billion at the midpoint, significantly higher than analyst estimates of around $24.3 billion. <\/p>\n
Adjusted earnings per share are projected at approximately $19.15, well above expectations near $12.<\/p>\n
The company also announced a 30% increase in its quarterly dividend, raising it to 15 cents per share.<\/p>\n
The strong outlook suggests that demand for memory chips is expected to remain robust, particularly as AI infrastructure investments continue to expand globally.<\/p>\n","protected":false},"excerpt":{"rendered":"Micron Technology delivered a blockbuster set of second-quarter results on Wednesday, underscoring the strength of demand for memory…\n","protected":false},"author":2,"featured_media":198337,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,111,139,69,145],"class_list":["post-336996","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-new-zealand","tag-newzealand","tag-nz","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/336996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=336996"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/336996\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/198337"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=336996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=336996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=336996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}