Micron’s AI Boom Defies Doubts as Quarterly Sales Top $54 Billion
Micron’s results point to just how much the artificial-intelligence buildout is reshaping demand for memory chips: the company reported quarterly revenue of $54.23 billion and an 87% gross margin. The figures beat market expectations, even as investors have questioned whether the rally can last.
The Nasdaq-listed chipmaker also forecast $61.5 billion in revenue for its first quarter of fiscal 2027, above analyst consensus. Adjusted earnings reached $33.42 per share in the fourth quarter of fiscal 2026, topping estimates of $31.83, according to figures reported by XTB.
AI demand drives record results
Micron’s performance reflects heavy demand for memory used in AI infrastructure, XTB reported. The scale of interest was striking: the company’s website briefly went down after its results were released. Shares moved sharply in after-hours trading, though reports differed on the size of the rise, with some citing a gain as high as 15% and other market coverage indicating a more modest increase.
The results arrive against a backdrop of steep earnings-growth forecasts. Before the release, Zacks consensus estimates cited called for full-year earnings of about $73.90 per share and revenue of $129.7 billion. Those forecasts represented year-over-year increases of roughly 791% and 247%, respectively.
Volatility shadows the rally
Micron’s share moves have been uneven. In one recent session, the stock fell 6.98% to $941.10, underperforming the S&P 500, which declined 0.69%. In another, shares gained 2.73% to $1,043.49, outpacing the benchmark’s 1.49% rise.
That contrast captures the debate around the stock: extraordinary projected growth has met concerns that investors may already be pricing in the boom—or anticipating a future slowdown in revenue. A Seeking Alpha article described the market as potentially pricing in future declines while its author remained bullish. Barron’s also reported that an Intel-backed startup was targeting the memory-chip market, adding a competitive angle to the outlook.
For now, Micron’s latest guidance gives investors a fresh marker to judge whether AI-related demand can sustain the surge. The company’s forecast calls for first-quarter revenue of $61.5 billion.
