Micron Reports Massive Q4 Profit Surge to $37.7 Billion on AI Demand
Micron reported a massive surge in Q4 net income to $37.7 billion and beat revenue expectations with $54.23 billion, driven by surging AI demand for memory chips.
Micron reported its fourth fiscal quarter with a dramatic surge in net income to $37.7 billion, compared to $3.2 billion in the same period last year—an increase of nearly 12 times (up 1,078%, 11.8x). Adjusted earnings stood at $33.42 per share, while analysts expected $31.61 per share. Revenue reached $54.23 billion, also beating expectations of $51.07 billion.
Micron is the sole US manufacturer of High Bandwidth Memory (HBM), composed of stacked DRAM layers. Quarterly sales from DRAM memory surged 343% year-over-year to $39.8 billion, accounting for 73% of total revenue. The company also issued a strong forecast, projecting revenues of $61.5 billion and adjusted earnings of $38.15 per share for the first quarter, surpassing analyst expectations of $57 billion in revenue and $38.15 adjusted earnings.
Despite the robust results, the stock rose by only 0.5% in after-hours trading. Following a 536% surge in the stock over the past year and 270% since the beginning of the year, investors apparently hoped for an even wider beat against analyst projections. Micron has benefited from a global memory chip shortage driven by unprecedented demand for AI models and applications.
CEO Sanjay Mehrotra stated during the earnings call that the company has a strong development roadmap for future HBM generations and is working with NVIDIA on the industry's first custom HBM solution.
