Micron posts $10.85 billion in revenue on AI demand

Published: 2026-06-27T06:13:00.000Z

Micron Technology has delivered another quarter that underlines how thoroughly AI has rewired the memory chip business. The company posted revenue of $10.85 billion, up 37 percent year over year, and swung to a net profit of $1.89 billion from a loss a year earlier, driven by demand for AI memory.

Micron Technology has delivered another quarter that underlines just how thoroughly artificial intelligence has rewired the memory chip business. The company posted revenue of $10.85 billion for its fiscal third quarter, up 37 percent from the same period a year earlier, while swinging to a net profit of $1.89 billion from a loss of $332 million in the prior year. The turnaround is striking, and it speaks to a simple reality, that the AI boom has turned memory, long treated as a cyclical commodity, into one of the most sought after components in technology. The headline numbers comfortably beat Wall Street's expectations on both lines. Micron reported adjusted earnings per share of $1.91, ahead of the $1.60 analysts had penciled in, while revenue topped the average estimate of $10.7 billion. Those beats matter because memory has historically been a notoriously volatile business, prone to gluts and price crashes, so a clean outperformance signals that demand is running well ahead of the usual cycle. The results add to a growing body of evidence that the enormous sums being poured into advanced computing infrastructure are flowing straight through to the companies that supply its building blocks. The guidance is arguably more important than the quarter itself, since it tells investors where things are heading. Micron raised its outlook for the fiscal fourth quarter, forecasting revenue of around $11.2 billion give or take $300 million, above the roughly $10.9 billion the market expected, alongside adjusted earnings per share of $2.50 that also cleared estimates. Taken together, those projections point to sustained momentum through the second half of the year rather than a one off spike, which is exactly what a market wary of memory's boom and bust history wants to see. At the center of the story sits high bandwidth memory, the specialized chips known as HBM that sit alongside AI processors and feed them data fast enough to keep up. Chief executive Sanjay Mehrotra said HBM revenue surpassed $1 billion in the quarter and that the company expects to generate several billion dollars from the category in the next fiscal year. Crucially, he noted that demand still exceeds available production capacity, with pre-orders stretching into 2027. When a supplier is effectively sold out that far ahead, it gains pricing power that the memory industry has rarely enjoyed. The data center segment, driven by cloud companies and AI model developers expanding their infrastructure, has become Micron's primary growth engine, prompting the company to keep investing heavily in manufacturing capacity and next generation chips. The regional read connects directly to the Gulf's ambitions. Saudi Arabia and the UAE are pouring billions into data centers and AI compute under their national strategies, and every one of those facilities needs vast quantities of exactly the memory Micron makes. As the region races to build sovereign AI infrastructure, the supply constraints Micron describes are not abstract, since the same scramble for HBM and data center memory that is lifting the company's results also shapes how quickly Gulf operators can bring their own AI capacity online.