Micron Technology expects its profit for the second quarter to nearly double what analysts predicted. The company said strong memory chip prices, limited supply, and high demand from AI data centers are driving growth. Following the announcement, Micron’s shares rose 14% in after-hours trading.
The company forecasts adjusted earnings of $8.42 per share, plus or minus 20 cents. Analysts had expected $4.78 per share, according to LSEG data.
Micron makes chips used in servers, computers, smartphones, and cars. It is also one of only three companies, along with SK Hynix and Samsung, that supply high-bandwidth memory chips, which are crucial for building and running AI models.
Demand from data centers is rising as major cloud providers increase spending on hardware and cloud services. Micron expects revenue of around $18.7 billion this quarter, above analysts’ $14.2 billion estimate.
In the first quarter of its fiscal year, Micron reported $13.64 billion in sales and $4.78 per share in adjusted profit. Analysts had forecast $12.85 billion in sales and $3.95 per share.
