Micron Crushes Q4 Earnings, Guides Revenue to $61.5B on AI Chip Demand

Micron Technology reported fiscal fourth-quarter earnings that crushed Wall Street expectations on September 30, posting revenue of $54.23 billion and earnings per share of $33.42. The memory chipmaker also issued a stronger-than-expected Q1 guidance of $61.5 billion in revenue. The results reflect explosive demand for AI infrastructure, with data centers consuming massive quantities of high-bandwidth memory for GPU processors and data storage.

Record earnings driven by AI data center boom

Micron’s Q4 revenue jumped 379% year-over-year to $54.23 billion, beating analyst consensus of $51.07 billion. Earnings per share reached $33.42, topping the expected $31.61. Net income climbed to $37.7 billion from $3.2 billion a year earlier. DRAM revenue, which powers AI processors, surged 343% to $39.8 billion, representing 73% of total sales. CEO Sanjay Mehrotra said the company has a “strong roadmap for future HBM products” and is working with Nvidia on the industry’s “first custom HBM implementation.”

Guidance blows past analyst forecasts

For fiscal Q1 2027, Micron projects revenue of $61.5 billion, beating analyst expectations of $57 billion by 7.9%. The company guided adjusted EPS to $38.15, well above the consensus estimate of $35.40. Hendi Susanto, portfolio manager at Gabelli Funds, called it “another strong beat and raise for Micron” and noted he has “not heard any negative data points pointing to the memory cycle reversing toward a decline anytime soon.” The guidance signals confidence in sustained AI demand.

Stock rally reflects AI memory shortage

Micron shares have surged 550% over the past 12 months and 275% year-to-date as of September 30. The stock trades at $1,065.11 with a Meyka grade of B+ and a 12-month forecast of $1,116.49. Analyst consensus is a strong buy, with 32 buy ratings, 2 holds, and 1 sell. The rally reflects a worldwide supply crunch caused by historic demand for memory chips needed for AI models and workloads.

Higher chip costs ripple through consumer electronics

Rising memory costs have forced consumer electronics makers to raise prices. Apple increased iPhone 18 Pro prices by $100 compared with the iPhone 17 Pro. While higher prices have cut into unit sales, manufacturers have offset much of the negative impact on profit margins. Micron is also betting on long-term growth, announcing in August a $10 billion investment over 10 years to build a research institution in Boise, Idaho.

Final Thoughts

Micron’s beat and raise underscore the durability of AI demand. With Meyka grading the stock B+ and 32 analysts rating it a buy, the data supports continued strength, though the stock’s 550% rally means upside may be limited near-term.

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