Micron (MU) Stock Surges 10% on Stellar Earnings Beat and AI-Driven Demand
Micron Technology delivered a seismic earnings surprise, forecasting Q2 adjusted profits of $8.42 per share—a staggering 75% above Wall Street's $4.78 estimate. The memory chip giant's shares leapt nearly 10% in premarket trading, extending its year-to-date rally to 168%.
Behind the explosive numbers lies an insatiable AI-driven demand cycle. Micron expects memory markets to remain tight through 2026, currently meeting just 50-67% of key customer requirements. The company raised its 2026 capex guidance to $20 billion as it scrambles to address supply shortages.
As one of only three global suppliers of high-bandwidth memory chips—alongside SK Hynix and Samsung—Micron sits at the epicenter of the AI infrastructure boom. CEO Sanjay Mehrotra's bullish commentary suggests the memory chip supercycle has years of runway remaining.
