Micron Surges on AI Chip Sales as Earnings Beat Expectations

​Micron Technology just gave investors a solid reason to cheer. The memory-chip maker reported strong fiscal Q2 earnings, fueled by surging demand for its AI-focused high-bandwidth memory (HBM) chips—a product line that crossed the $1 billion sales milestone in a single quarter.

Shares of Micron jumped in after-hours trading Thursday before settling up 1%, pushing the stock’s 2025 gains to 22%. That stands out in a year where the broader semiconductor sector has struggled.

AI Drives Big Gains in Memory Sales
The company’s HBM chips, used in data centers powering artificial intelligence workloads, were the star of the show. Micron said HBM sales were up 50% sequentially and are sold out through all of calendar year 2025.

“We are in the best competitive position in our history,” CEO Sanjay Mehrotra told analysts. “Demand for our AI-optimized memory is stronger than ever”.

The company expects “multi-billion-dollar revenue” from HBM sales in fiscal 2025 and is already deep in 2026 supply negotiations with major customers.

Micron Beats Earnings Estimates
Micron reported:
-Revenue: $8.0 billion (vs. $7.9B expected)
-Adjusted net income: $1.78 billion, or $1.56 per share (vs. $1.43 expected)
Guidance for Q3 was also stronger than anticipated, with projected revenue around $8.8 billion, plus or minus $200 million—well above Wall Street’s $8.47 billion estimate.

PC Market Outlook and Broader Strategy
Mehrotra noted that while the PC market is expected to grow modestly, the rise of AI PCs, which require more memory, will drive additional demand.

Despite volatility in the broader chip market—highlighted by the Philadelphia Semiconductor Index's 7.6% drop this year—Micron’s results show AI-driven demand can buck the trend, especially for key infrastructure components like memory.

​