Micron Delivers Blowout Quarter on Surging Memory Demand

Micron shares jumped 15.8% in after-hours trading after the chipmaker delivered a far stronger-than-expected third fiscal quarter, powered by huge demand for its memory chips. Revenue rose 346% year over year to $41.46 billion, well above the $35.84 billion analysts had expected and up from $9.3 billion a year earlier.

Gross margin climbed to 84.9% from 74.9% in the same quarter last year. Net income reached $28.24 billion, compared with $1.89 billion a year earlier, an increase of nearly 1,400%. Adjusted earnings came in at $25.11 per share, topping the market forecast of $20.78.

The company also issued upbeat guidance for the current fiscal fourth quarter, projecting revenue of around $50 billion versus Wall Street expectations of $43.58 billion. Micron said sales rose sharply across all four of its business segments, with the data center chip division leading the surge at $11.5 billion in quarterly revenue, up from $1.53 billion, a gain of 652%.

Other segments also posted major gains, including cloud memory revenue of $13.77 billion, up 300%, mobile revenue of $11.52 billion, up 250%, and automotive chip revenue of $4.63 billion, more than tripling. Micron, listed on Nasdaq, has a market value of $1.18 trillion, and its stock is up 267% since the start of the year and 724% over the past 12 months.