Shares of Micron Technology (MU +10.21%) surged on Thursday after the chipmaker delivered outstanding earnings results and issued a bullish sales and profit forecast.
By the close of trading, Micron's stock price was up more than 10%.
Image source: Micron Technology.
Business is booming
Micron's revenue soared 57% year over year to $13.6 billion in its fiscal 2026 first quarter, which ended on Nov. 27. The semiconductor company's high-performance memory chips are being used increasingly in artificial intelligence (AI) factories. So much so that demand is likely to outstrip supply for the foreseeable future.
"Micron's technology leadership, differentiated product portfolio, and strong operational execution position us as an essential AI enabler, and we are investing to support our customers' growing need for memory and storage," CEO Sanjay Mehrotra said in a press release.
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Key Data Points
Micron's profits, in turn, are skyrocketing. Adjusted net income leaped 169% to $5.5 billion, or $4.78 per share. That crushed Wall Street's estimates, which had called for adjusted per-share earnings of $3.96.
Management sees more gains ahead
Micron guided for second-quarter revenue of roughly $18.7 billion and earnings of $8.19 per share.
"Our Q2 outlook reflects substantial records across revenue, gross margin, EPS, and free cash flow, and we anticipate our business performance to continue strengthening through fiscal 2026," Mehrotra said.
