Home / Business and Economy / AI Boom Fuels Micron's Record Quarter
AI Boom Fuels Micron's Record Quarter
19 Mar
Summary
- Micron reported record earnings and nearly tripled revenue.
- AI demand significantly boosted cloud memory business by 160%.
- Analysts raise price targets despite increased capital expenditure.
Micron announced impressive fiscal second quarter results, with earnings per share of $12.20 and revenue reaching $23.86 billion, nearly tripling from the previous year. This performance significantly surpassed analyst expectations. The demand fueled by artificial intelligence buildouts continues to bolster Micron's business, particularly benefiting its cloud memory segment, which experienced a 160% year-over-year revenue growth.
Despite the positive earnings, Micron's shares saw a dip due to planned capital expenditures expected to exceed $10 billion. Analysts believe this increased spending, potentially reaching $30 billion by fiscal year 2027, is a key factor influencing investor sentiment. However, many remain optimistic, with several firms raising their price targets.
Analysts note that the AI-driven demand for memory may differ from past cycles, potentially leading to a more sustained period of elevated pricing. The company also secured its first five-year strategic customer agreement, signaling a shift in how memory is viewed as a critical asset rather than a commodity. This long-term visibility, coupled with robust AI demand, suggests continued strength for Micron.
