New Delhi, India, December 18, 2025 - Micron forecasts blowout earnings as artificial intelligence demand drives memory chip sales to new heights. The company expects its second-quarter adjusted profit to nearly double Wall Street’s estimates, signaling a strong outlook for the semiconductor industry.
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. This sharp increase reflects soaring prices for memory chips and tight supply conditions. Shares of Micron jumped 7% in extended trading after the announcement, highlighting investor confidence in the company’s strategy.
Micron also raised its revenue forecast for the current quarter to $18.70 billion, plus or minus $400 million. Analysts had expected about $14.20 billion, making this guidance a significant beat. For the previous quarter, Micron reported $13.64 billion in sales and $4.78 per share in adjusted profit, exceeding market expectations.
The surge in demand comes from artificial intelligence data centers, which require advanced memory chips for training and deploying 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 powering AI workloads, and their scarcity has created intense competition among technology companies.
Micron’s leadership emphasized that memory markets will remain tight beyond 2026. Chief Executive Officer Sanjay Mehrotra said the company expects to meet only half to two-thirds of demand from key customers in the medium term. This shortfall underscores the growing importance of long-term supply agreements. Micron is negotiating multiyear contracts to secure its position in the AI-driven market.
To support this 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 believe this strategic move will improve margins and enhance competitiveness.
Industry experts agree that AI is the primary driver of Micron’s performance. “AI-related demand remains the biggest growth engine for Micron,” said Kinngai Chan of Summit Insights. The company has already shifted its production focus toward AI data centers, reducing its consumer-facing business. Earlier this month, Micron announced it would discontinue selling memory chips directly to consumers under the Crucial brand.
The company’s repositioning reflects a broader trend in the technology sector. Furthermore, cloud service providers are investing heavily in infrastructure to support AI applications, creating sustained demand for memory chips. As a result, Micron’s ability to supply these critical components positions it as a key beneficiary of this transformation.
Jacob Bourne, an analyst at eMarketer, said Micron’s strategy fits current market trends. Moreover, “As AI demand continues to soar, Micron will remain among the winners,” he said. Therefore, by focusing on high-bandwidth memory, the company is ready to support advanced computing needs.
Micron’s strong forecast shows optimism for the semiconductor industry, which has been volatile in recent years. Moreover, as AI changes technology, memory chips are now essential. Therefore, Micron’s big investments and partnerships suggest it is ready to lead as the industry evolves.
As demand grows, supply constraints may continue, which could therefore challenge device makers and cloud providers. Still, Micron’s outlook shows that it is confident about handling these issues and achieving strong growth.
