Micron logo
New Delhi, India, December 18, 2025 – Micron forecasts strong earnings as artificial intelligence demand pushes memory chip sales to record levels. The company expects its second-quarter adjusted profit to nearly double Wall Street estimates, signaling optimism for the semiconductor sector.
On Wednesday, Micron projected adjusted earnings of $8.42 per share, plus or minus 20 cents. Analysts had predicted around $4.78 per share, according to LSEG data. Rising memory chip prices and tight supply conditions are behind this sharp increase. Shares of Micron jumped 7% in extended trading, reflecting investor confidence in the company’s strategy and its AI-focused approach.
Micron also lifted its revenue forecast for the current quarter to $18.70 billion, plus or minus $400 million. Analysts had expected about $14.20 billion, marking a significant beat. In the previous quarter, Micron reported $13.64 billion in sales and $4.78 per share in adjusted profit, surpassing expectations. The figures underscore growing momentum in the memory chip market.
The surge in demand comes mainly from AI data centers, which require advanced memory chips for training and running generative AI models. Micron is one of only three major suppliers of high-bandwidth memory chips, alongside Samsung Electronics and SK Hynix. These components are essential for AI workloads, and scarcity has intensified competition among technology firms.
Micron’s leadership said memory markets will remain tight beyond 2026. Chief Executive Officer Sanjay Mehrotra explained that the company expects to meet only half to two-thirds of demand from key customers in the medium term. This shortfall highlights the importance of long-term supply agreements. Micron is negotiating multiyear contracts to secure its position in the AI-driven market.
To support growth, Micron plans to increase its 2026 capital expenditure to $20 billion, up from an earlier estimate of $18 billion. This investment will expand production capacity and strengthen its ability to serve AI-related demand. Analysts predict that this strategy will improve profit margins and enhance competitiveness.
Industry experts point out that AI drives Micron’s recent performance. “AI-related demand remains the biggest growth engine for Micron,” said Kinngai Chan of Summit Insights. The company has shifted its production focus toward AI data centers, scaling back its consumer-facing business. Earlier this month, Micron announced it would stop selling memory chips directly to consumers under the Crucial brand.
The company’s repositioning clearly reflects a wider trend in technology. Furthermore, cloud service providers are heavily investing in infrastructure to support AI applications, thereby creating sustained memory chip demand. As a result, Micron’s strong capacity to supply these critical components positions it as a major beneficiary of the AI transformation.
Jacob Bourne, an analyst at eMarketer, noted that Micron’s strategy closely matches current market trends. Moreover, “As AI demand continues to rise, Micron will remain among the winners,” he said. In addition, the company’s focus on high-bandwidth memory therefore ensures it can efficiently meet advanced computing needs.
Micron’s strong forecast suggests optimism for the broader semiconductor market, which has experienced volatility in recent years. Furthermore, AI is rapidly transforming technology, making memory chips increasingly essential. In addition, strategic investments and partnerships therefore indicate that Micron is well-prepared to lead in this evolving landscape.
As AI demand accelerates, supply constraints may still continue, thereby challenging device makers and cloud providers. Nevertheless, Micron’s outlook clearly reflects confidence in its ability to navigate these pressures and, moreover, deliver strong growth in the coming years.
About the Author
