Micron Technology (MU) Stock: Shares Jump After Blowout Quarter Beats All Expectations

TLDR

Table of Contents

Micron reported Q3 adjusted earnings of $1.91 per share, beating Wall Street estimates of $1.60
Revenue hit $9.30 billion, surpassing expectations of $8.86 billion with 37% year-over-year growth
Memory segment revenue jumped 51% to $7.1 billion, driven by expensive AI data center chips
Q4 guidance exceeded expectations with projected revenue of $10.7 billion versus $9.9 billion estimated
Stock up 51% year-to-date as AI boom fuels high bandwidth memory demand

Micron Technology delivered a strong third-quarter performance that sent shares higher in after-hours trading Wednesday. The memory chip manufacturer posted adjusted earnings of $1.91 per share, crushing analyst expectations of $1.60.

Micron Technology, $MU, Q3-25. Results:
🟢 +7% Post-Market
📊 Adj. EPS: $1.91 🟢
💰 Revenue: $9.30B 🟢
📈 Net Income: $1.89B
🔎 Record DRAM revenue and data center sales helped drive all-time high quarterly revenue. pic.twitter.com/rbIgEfwkdw
— EarningsTime (@Earnings_Time) June 25, 2025

Revenue reached $9.30 billion for the quarter, beating the $8.86 billion consensus estimate. This represented a 37% increase from the same period last year when the company reported $6.81 billion in sales.

The stock initially popped 3% in extended trading following the earnings release. Micron shares have been on a tear this year, climbing 51% compared to the Nasdaq’s 3.4% gain.

Both of Micron’s main business segments contributed to the revenue beat. The memory division generated $7.1 billion in sales, up 51% year-over-year. This growth was powered by demand for high-end memory chips used in AI data centers.

The solid-state storage segment also surprised investors. Analysts expected this division to shrink during the quarter, but it actually grew 4% to $2.2 billion.

Data center revenue more than doubled in the third quarter. The company has benefited from soaring demand in the high bandwidth memory market as artificial intelligence applications proliferate.

Strong Forward Guidance

Micron’s outlook for the current quarter easily surpassed Wall Street expectations. The company projects adjusted earnings of $2.50 per share at the midpoint of its guidance range, well above the $2.03 analyst estimate.

Revenue guidance of $10.7 billion also topped expectations of $9.9 billion. This would represent a 38% increase from the $7.75 billion reported in the same quarter last year.

CEO Sanjay Mehrotra highlighted the company’s position in the AI-driven memory boom. He said Micron is making “disciplined investments to build on our technology leadership and manufacturing excellence to satisfy growing AI-driven memory demand.”

The memory business has historically been cyclical, with regular inventory cycles driving prices to extremes. But the current AI investment wave appears to be providing more stable demand patterns.

Consumer Device Upgrade Cycle

Mehrotra pointed to another potential growth driver beyond data centers. Consumer smartphone and PC makers are starting to add on-device AI capabilities, which requires more memory.

The CEO expects slow unit growth in smartphone and PC markets. However, memory utilization will become denser as manufacturers integrate AI features into devices.

“AI adoption remains a key driver of memory content growth for smartphones,” Mehrotra said during the earnings call. “We expect more smartphone launches featuring 12 gigabytes or more, compared to eight gigabytes of capacity in the average smartphone today.”

This upgrade trend could boost Micron’s sales even if overall smartphone and PC sales remain flat. The shift to higher memory configurations would drive revenue growth through improved content per device.

Wall Street analysts remain confident that accelerating data center investment will continue through this year and into next. The secular AI investment trend appears to be overriding traditional memory cycle patterns.

Micron stock pared most of its initial after-hours gains as trading continued Wednesday evening. The company reported these results on June 25, 2025, with shares closing regular trading at $128.27 before the earnings announcement.

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