Micron forecasts Q1 revenue above estimates on AI chip demand

Micron Technology forecast first-quarter revenue above analysts' estimates, signaling continued growth driven by strong demand for AI-powered memory chips. The company expects revenue between $60 billion and $63 billion, significantly exceeding the consensus estimate of $57.02 billion.

In its third quarter, Micron Technology delivered a blowout performance with revenue reaching $41.46 billion, more than quadrupling from $9.3 billion in the same period a year earlier. Adjusted earnings hit $25.11 per share, surpassing analyst expectations. The explosive growth is largely attributed to surging demand for high-bandwidth memory (HBM) chips, which are crucial for AI accelerators. Micron's CEO, Sanjay Mehrotra, stated that the company's entire 2026 HBM supply is already sold out under multi-year contracts. The company's next-generation HBM4 chips are ramping at twice the speed of the previous HBM3E generation, with HBM4 revenue already exceeding $1 billion. Gross margins reached an extraordinary 81 percent, up from 69 percent in the prior quarter and 27 percent a year earlier.