Micron Technology delivered a strong start to its fiscal year, posting first-quarter results that exceeded Wall Street expectations and issuing an upbeat outlook that underscored the accelerating demand for memory driven by artificial intelligence infrastructure.

The chipmaker’s shares jumped more than 7% in after-hours trading following the announcement, reflecting investor enthusiasm over both the earnings beat and the forward guidance.

For the fiscal first quarter, Micron reported adjusted earnings per share of $4.78, comfortably above the consensus estimate of $3.95. Revenue reached $13.64 billion, surpassing analysts’ expectations of $12.84 billion, according to LSEG data.

Looking ahead, Micron projected an even stronger performance for the current quarter. The company said it expects revenue of approximately $18.70 billion, far higher than the $14.20 billion anticipated by analysts. Adjusted earnings per share are forecast to reach about $8.42, nearly double the market’s prior estimate of $4.78 per share. The guidance highlights the scale of demand momentum the company is seeing, particularly from data centers supporting AI workloads.

Chief Executive Officer Sanjay Mehrotra attributed the robust outlook to rapid expansion in AI data center capacity worldwide. Speaking during an earnings call, he noted that growth in artificial intelligence applications is significantly increasing demand for high-performance and high-capacity memory and storage products. Mehrotra added that server unit demand has strengthened markedly, with server shipments growing in the high-teens percentage range in 2025.

Micron’s profitability also improved dramatically compared with a year earlier. Net income for the quarter reached $5.24 billion, or $4.60 per share, up from $1.87 billion, or $1.67 per share, in the same period last year. Overall revenue surged 57% year over year, reflecting both higher volumes and improved pricing conditions across key product lines.

The company specializes in memory chips and solid-state storage used in personal computers, servers, and data centers. These components have been in especially tight supply in recent months as the global push to build AI infrastructure has created unprecedented demand for advanced semiconductors. Large-scale AI models require vast amounts of fast and reliable memory, placing Micron at the center of one of the most important technology trends in the market.

This surge in demand has translated directly into stock performance. Micron shares have climbed roughly 168% so far in 2025, making the company one of the standout performers in the semiconductor sector this year.

Micron also holds a strategically important position in the AI supply chain. It is one of only three companies worldwide capable of producing high-bandwidth memory, a critical component for AI accelerators. Its products are used extensively in advanced processors, including the latest artificial intelligence chips from AMD, among others.

During the quarter, Micron reported $5.28 billion in cloud memory sales, representing a doubling compared with the same period last year. Core data center sales totaled $2.38 billion, marking a more modest 4% increase year over year. The company said growth across both segments was primarily driven by higher pricing, reflecting tight supply conditions and strong customer demand.

Earlier this month, Micron announced a strategic shift in its sales approach, saying it would stop selling memory and related components directly to consumers. The move is intended to prioritize supply for data centers and AI-focused customers, where demand is strongest and long-term growth opportunities are most compelling.

Taken together, Micron’s latest results and outlook highlight how deeply the AI boom is reshaping the semiconductor industry. As companies race to expand data center capacity and deploy more advanced AI systems, demand for high-performance memory is expected to remain strong, positioning Micron for continued growth in the quarters ahead.