Micron forecasts strong quarterly results on soaring memory chip demand
Micron logo is seen in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration
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June 24 : Micron Technology forecast quarterly earnings above Wall Street estimates on Wednesday, signaling that heavy investments in AI-related infrastructure will drive strong demand for memory chips, sending its shares up more than 9 per cent in extended trading.
The company expects fourth-quarter revenue of $50 billion, plus or minus $1 billion, compared with analysts’ average estimate of $43.58 billion, according to data compiled by LSEG.
The results and forecast show how the explosive growth of generative AI has turned products such as high-bandwidth memory (HBM) into critical components for large-scale data centers.
Micron, a key supplier for Nvidia’s AI processors, has benefited as AI chip and server makers rush to secure a limited supply.
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Micron, the only U.S.-based manufacturer of high-end memory chips, has seen demand for its HBM chips far outstrip its production capacity, and analysts expect demand to exceed supply for the next two to three years.
Major memory chip makers are prioritizing high bandwidth memory to meet AI demand, leaving consumer electronics makers scrambling to secure conventional memory and driving prices of products higher.
“We expect tight conditions to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints,” Micron CEO Sanjay Mehrotra said in the company’s prepared remarks.
Micron said it intends to increase its capital return, while it invests heavily in expanding infrastructure in order to satisfy soaring demand.
The company expects fourth-quarter capital expenditure of around $10 billion, while analysts expect spending of $8.89 billion.
It reported third-quarter revenue of $41.46 billion, flying past estimates of $35.85 billion.
The company reported adjusted profit of $25.11 per share, compared with estimates of $20.78 per share.
Micron expects fourth-quarter adjusted earnings per share of $31, plus or minus $1, compared with the estimates of $25.84 per share.
Source: Reuters
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