Micron Technology’s AI-Driven Surge Powers Record Financial Performance

Micron Technology has delivered a stunning quarterly report that shattered market expectations, driven by unprecedented demand for its memory solutions from the artificial intelligence sector. The memory chip leader announced record revenue of $11.32 billion, with earnings per share reaching $3.03, figures that significantly outpaced analyst projections. This represents a remarkable 46 percent year-over-year growth surge.

Unprecedented Demand and Ambitious Outlook

The company’s forecast for the first quarter of 2026 points to continued momentum, with revenue projections of $12.5 billion substantially exceeding the $11.94 billion consensus estimate. This sequential increase of approximately $1.2 billion underscores the powerful, sustained demand cycle for AI-related memory. Reflecting strong confidence in long-term growth prospects, Micron is ramping up capital investments to over $13.8 billion. A significant portion of this, $4.5 billion earmarked for the first quarter alone, is allocated to DRAM manufacturing equipment and facility construction.

Should investors sell immediately? Or is it worth buying Micron?

Cloud and HBM Revenue Skyrockets

A key driver of this performance is Micron’s Cloud Memory Business Unit, which generated an impressive $4.54 billion in revenue during the fourth quarter. This figure triples the unit’s sales from the previous year. The explosion in demand for High-Bandwidth Memory (HBM) products, essential for advanced AI applications, is the primary force behind this growth. CEO Sanjay Mehrotra revealed that HBM-specific revenue approached $2 billion, an amount that annualizes to a rate of $8 billion. The company anticipates having its entire HBM production capacity for calendar year 2026 under contract in the coming months.

Breakthrough Technology Secures Competitive Edge

Micron has also achieved a significant technological milestone, becoming the first in the industry to ship 1γ-DRAM products. The company brought this advanced manufacturing node to production readiness 50 percent faster than its previous generation. This pace of innovation provides Micron with a critical competitive advantage in the intensely competitive memory market. In parallel, the company is making substantial progress with its G9-NAND production, which is being scaled to meet market demand for both TLC and QLC NAND applications.