Micron (MU 2.98%) stock posted a run of explosive gains in 2025. The memory-chip specialist's share price surged 239.1% in the year, according to data from S&P Global Market Intelligence.
With the S&P 500 rising 16.4% and the Nasdaq Composite gaining 20.4% last year, Micron's incredible rally was aided by bullish valuation trends shaping the broader market -- but there's much more to the story. Demand and pricing power for memory chips used in artificial intelligence (AI) processors have been surging, and it's having a transformative impact on the business.
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AI demand made 2025 an incredible year for Micron stock
Micron is the leading provider of high-bandwidth-memory (HBM) chips used in AI processors from companies including Nvidia and Advanced Micro Devices. Ramping buildouts for AI infrastructure have spurred soaring demand for HBM chips, and the dynamic helped power robust sales and earnings growth for Micron last year.
In Micron's 2025 fiscal year, which ended Aug. 28, the business posted revenue of $37.38 billion -- up from $25.11 billion in fiscal 2024. non-GAAP (adjusted) earnings per share for the last fiscal year came in at $8.29 -- skyrocketing above adjusted per-share earnings of $1.30 in fiscal 2024.
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Impressive momentum continued in the first quarter of the current fiscal year, which ended Nov. 27. Revenue rose 56.6% year over year to $13.64 billion, and adjusted earnings per share surged 167% higher to reach $4.78.
Micron followed up its fiscal Q1 report with news that it had already sold out of HBM chips through 2026. The company also announced that it was moving out of the consumer chips space to focus on the enterprise market.
Micron stock has kept roaring in 2026
As of this writing, Micron stock has gained an additional 27.1% across 2026's trading. Over the same stretch, the S&P 500 has risen 1.4%, and the Nasdaq Composite is up 1.2%.
Micron stock has continued to rally thanks to expectations that demand for HBM chips will remain sky high for the foreseeable future. With the company anticipating that it will only be able to meet roughly 60% of the demand for AI memory chips this year, it looks like strong sales and earnings growth will extend into next year.
Micron's share price has also seen big jumps in conjunction with moves that the company is making in the manufacturing space. The company announced on Jan. 16 that it had started construction on its massive chip fabrication facility in New York. The next day, Micron announced that it had signed a deal to purchase a fabrication facility from Powerchip Semiconductor Manufacturing Corporation. With production capacity scaling to meet soaring demand, Micron's new growth phase could still be in early innings.
