Micron edges higher premarket as AI-driven demand fuels results, outlook

Investing.com -- Shares of Micron Technology moved higher in premarket U.S. trading on Wednesday, after the chipmaker posted quarterly results that beat Wall Street expectations and also issued upbeat guidance.

Micron’s latest returns were powered by a stronger-than-anticipated call for its DRAM and NAND offerings, CEO Sanjay Mehrotra said in a post-earnings call.

In turn, Boise, Idaho-based Micron said it expects that current-quarter midpoint adjusted profit per share will stand at $3.75 on projected revenue of $12.5 billion, plus or minus $300 million. Analysts had been looking for a forecast of $3.10 in adjusted income per share and $11.91 billion in revenue.

Mehrotra said that supply is "tight," while the demand environment for DRAM -- or dynamic random access memory -- processors should be "healthy" next year.

Micron flagged that the majority of its supply of high-bandwidth memory chips have already been contracted for 2026, with the rest of the year’s cpaacity tipped to sell out in the "coming months," analysts at Mizuho highlighted in a note. The strategists added that Micron is "well positioned" in the AI boom and is being boosted by its exposure to the data centers underpinning the technology.

To bolster supplies, Micron has said it plans to hike investments in the U.S. semiconductor sector to $200 billion. Current-quarter spending is seen amounting to $4.5 billion, the company noted.

In its quarter ended in August, a tripling in cloud memory business sales to $4.5 billion helped group-wide revenue spike by 46% to $11.32 billion, also topping expectations.

Analysts at Vital Knowledge described Micron’s report and guidance as "strong," although they noted that the returns faced "a very high bar" following recent blow-out quarterly numbers from peers like Broadcom and Oracle as well as "a slew of bullish sell-side previews."

Still, the analysts said, besides the AI-driven memory chip business, they were positive around a "brighter" outlook for Micron’s traditional servers and personal computers segments. Micron said traditional server growth in the 2025 calendar year has improved "significantly" from flat to expansion in the mid-single digit range, while PC unit shipments are seen rising in the mid-single digit percentage level thanks in large part to the adoption of AI-enabled PCs.

(Pratyush Thakur contributed reporting.)