Micron Surges on Record Q4 Earnings, Guides Q1 Revenue to $61.5B

Memory chip maker Micron Technology (MU) delivered a blowout fiscal fourth quarter on September 30, reporting adjusted earnings of $33.42 per share and revenue of $54.23 billion, both crushing Wall Street expectations. The company guided Q1 revenue to $61.5 billion, well above the $57 billion analyst consensus, signaling the AI infrastructure boom shows no signs of slowing. Shares rose slightly in extended trading as investors digest the record results and aggressive forward guidance.

Q4 earnings crush analyst targets by wide margins

Micron reported adjusted EPS of $33.42 versus the consensus estimate of $31.61, a 5.7% beat. Revenue soared to $54.23 billion from $11.31 billion a year earlier, a 379% year-over-year jump that exceeded the $51.07 billion estimate. Fourth-quarter DRAM revenue surged 343% to $39.8 billion, representing 73% of total sales. Net income climbed to $37.7 billion, or $32.87 per share, from $3.2 billion a year ago.

Q1 guidance signals AI demand will accelerate further

Micron expects first-quarter revenue between $60 billion and $63 billion, with the $61.5 billion midpoint running 8% above the $57 billion analyst consensus. Adjusted EPS guidance of $37.15 to $39.15 per share, with a $38.15 midpoint, also beats the $35.40 consensus. CEO Sanjay Mehrotra stated the company has a “strong roadmap for future HBM products” and is collaborating with Nvidia on the industry’s “first custom HBM implementation.” These projections reflect Micron’s confidence that data center spending on AI infrastructure will remain robust.

AI boom reshapes semiconductor supply and consumer pricing

As the only major U.S.-based maker of high-bandwidth memory, Micron faces orders that far exceed capacity. The memory shortage has driven prices higher across the semiconductor market and forced consumer electronics makers to raise prices. Apple increased iPhone 18 Pro prices by $100 compared with the iPhone 17 Pro line. Micron is investing aggressively to meet demand, lifting planned U.S. investments to over $250 billion through 2035 while tech giants Amazon and Alphabet are set to spend more than $730 billion on AI infrastructure this year.

Meyka data shows strong fundamentals despite valuation concerns

Meyka rates MU a B+ with a “Buy” suggestion, citing strong ROE of 70.5% and ROA of 37.6%. The stock trades at a 23.9x PE ratio, elevated versus historical norms, and Meyka’s 12-month price forecast of $1,116.49 sits 4.8% above the current $1,065.11 price. Analyst consensus is “Buy” with 32 buy ratings versus 2 holds and 1 sell. The stock has climbed 273% year-to-date and 537% over the past 12 months, though it fell 1% in premarket trading on October 1 as investors weighed the capex implications of the strong guidance.

Final Thoughts

Micron’s record earnings and aggressive Q1 guidance confirm the AI memory cycle remains in full swing, but the stock’s 24x PE and elevated valuation warrant caution. Meyka’s B+ grade and analyst consensus suggest limited upside from current levels, though the durability of AI spending provides a floor for near-term performance.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.