Micron lifts fiscal third-quarter revenue to more than four times the level of a year earlier, driven by a surge in memory demand from the spread of artificial intelligence.

On June 24, CNBC reported that Micron’s fiscal third-quarter revenue rose to $41.46 billion from $9.3 billion a year earlier, more than quadrupling. It also topped the market estimate of $35.84 billion.

Micron put current-quarter revenue guidance at about $50 billion. That is well above $11.3 billion a year earlier and also exceeds the market estimate of $43.58 billion.

Rising memory prices are at the center of the improvement. In recent years, demand for AI chips has quickly absorbed limited memory production capacity, sending prices sharply higher. As data center demand expanded, memory prices for devices such as smartphones and laptops also stayed on an uptrend.

Micron expects the trend will not end in the short term. It forecasts tight memory supply and demand, supported by AI demand, will continue beyond 2027. The company said it has signed 16 long-term contracts with data center operators and automakers, and the contract terms are 3 to 5 years. Micron Chief Executive Sanjay Mehrotra (산자이 메로트라) said, "If all contracts are fulfilled, we expect more than half of company revenue will come from these strategic customer contracts." Micron estimates it has secured $22 billion in financial commitments through these long-term contracts.

Profitability also improved sharply. Third-quarter gross margin was 84.9 percent, well above 74.9 percent in the previous quarter and 39 percent a year earlier. It also exceeded market estimates. Net profit was $28.24 billion and earnings per share were $24.67. A year earlier, net profit was $1.89 billion and earnings per share were $1.68.

By business segment, data centers showed the steepest growth. Revenue from its core data center business rose to $11.5 billion from $1.53 billion a year earlier, up more than sevenfold. Data center solid-state drive revenue also topped $5 billion. Cloud memory revenue rose more than 300 percent to $13.77 billion.

Its device memory business also benefited from rising prices. Revenue at the mobile and client business unit rose more than 250 percent to $11.52 billion. Revenue from automotive and embedded memory also rose more than fourfold to $4.63 billion. All four business segments recorded multiples-based growth.

The market is treating Micron’s results as a direct beneficiary of increased investment in AI infrastructure. Micron memory is seen as an essential component for chips from Nvidia and Google and servers equipped with those processors. Against that backdrop, Micron shares have risen about 700 percent over the past year and its market value has topped $1 trillion.

Micron shares closed down about 10.5 percent at $1,051.77 in regular trading on June 24, as the broader memory sector weakened on profit-taking. After the earnings release after the close, the stock rose as much as 15 percent in after-hours trading and, as of June 25 in South Korean time, was trading up about 11 percent.

The company said it will pay shareholders a dividend of $0.15 per share in July. Market attention is focused on whether AI-driven memory demand will in fact continue beyond 2027 and how much long-term supply contracts will reduce future earnings volatility.