Micron Stock Surges 14% on Record Revenue Forecast

Micron Technology office in Silicon Valley
Micron Technology office in Silicon Valley. Image by MichaelVi/Depositphotos

Shares of computer memory maker Micron Technology surged by 14% in after-market trading on Wednesday after the company predicted record revenue for its first quarter of fiscal 2025.

Micron has benefited from the artificial intelligence boom, considering it is one of only three producers of high-bandwidth memory (HBM), a crucial component for AI chips. It is the main supplier of semiconductor maker Nvidia, which controls up to 90% of the AI chip market.

Thanks to high demand for its HBM, which is sold out for both this year and 2025, Micron posted revenue of $7.75 billion in the final quarter of 2024. This is an improvement on both the Q3, in which the company made $6.81 billion in sales, and the same period of last year, when its revenue came to $4.01 billion. The full 2024 fiscal revenue came at $25.11 billion versus $15.54 billion in the year prior.

Now, Micron expects further growth in revenue for the first quarter of 2025, predicting it will beat the estimates of analysts while reaching new records. The company forecasts Q1 revenue of between $8.70 billion and $8.90 billion, while analysts expect $8.28 billion.

“We are entering fiscal 2025 with the best competitive positioning in Micron’s history,” Micron CEO Sanjay Mehrotra said in a statement. “We forecast record revenue in fiscal Q1 and a substantial revenue record with significantly improved profitability in fiscal 2025.”

Micron’s stock surged 14.46% in after-hours to reach $109.6 per share. The company’s shares closed at $95.77 per share on Wednesday, being 16.31% up year-to-date at that moment.

Ron B
Ron studied law but realized he’d much rather work in a profession that makes him happy and decided to become a writer. He now writes mostly about sports, business, stocks, and politics.