NEW YORK — Micron Technology on Tuesday reported fiscal second-quarter sales that were nearly three times last year’s level, underscoring how an industry-wide scramble for advanced memory chips is reshaping the semiconductor landscape.
The company booked revenue of $11.4 billion for the three months ended 29 February, compared with $4.1 billion a year earlier. Adjusted earnings came in at $2.14 per share, handily beating the $1.67 average forecast compiled by LSEG. Net income swung to $1.9 billion from a $2.3 billion loss in the same period of 2025.
“We are seeing unprecedented demand for high-bandwidth memory that powers generative AI workloads,” chief executive Sanjay Mehrotra told analysts on a conference call. Mehrotra said Micron’s entire 2024 and 2025 production of the latest HBM3e chips is already committed.
Micron shares, up roughly 68 percent year-to-date before the results, rose an additional 5 percent in after-hours trading. The stock’s performance contrasts sharply with the broader Philadelphia Semiconductor Index, which is up single-digits amid concerns over consumer electronics softness.
Rising spot prices for DRAM and NAND chips have rippled through everything from smartphones to data-center equipment in recent months. “Contract pricing on some server-grade DRAM parts is up more than 40 percent since December,” said Stacy Rasgon, an analyst at Bernstein Research. “Micron is positioned to monetize that scarcity better than peers because it exited the downturn with a leaner inventory profile.”
The company also authorized a fresh $10 billion share-repurchase plan and said capital expenditures this fiscal year will remain at the low end of its prior $8 billion–$8.5 billion guidance range. CFO Mark Murphy cited “continued discipline” as the firm ramps its 1-β node and advanced 3D-NAND.
Still, some analysts warned that memory is historically cyclical. “If hyperscale demand cools or if competitors bring capacity online faster than expected, today’s shortages could flip to surpluses by late 2026,” said Needham’s Quinn Bolton.
For the current quarter, Micron forecast revenue of $13.0 billion, plus or minus $500 million, and adjusted earnings of about $2.90 per share. Both mid-points are well above consensus estimates.
Looking ahead, investors will watch whether artificial-intelligence servers remain the dominant growth engine and whether export restrictions tighten around advanced memory bound for Chinese cloud providers. Any policy shock, analysts say, could test the resilience of what has become one of Wall Street’s hottest semiconductor bets.