Micron Reports Surge in Revenue and Profit Driven by AI Chip Demand Micron Technology’s latest earnings underscored how the global AI boom is rapidly reshaping the memory-chip market, turning a former commodity business into one of the industry’s most lucrative segments.

Micron’s fiscal third-quarter results marked the start of the current surge. The company reported revenue of nearly $42 billion, roughly quadruple the just-over-$9 billion it generated a year earlier, as high-bandwidth memory (HBM) for AI accelerators became the main bottleneck in new data-center builds. Gross margins climbed above 81%, far higher than typical for memory makers, as constrained supply met voracious demand from Nvidia, Google and major cloud providers.

The profit picture evolved just as sharply. One account described a “15-fold profit surge” as AI companies “clamour for chips,” highlighting how Micron’s earnings expansion has outpaced even its revenue growth. Another report noted that profit jumped from $1.88 billion to $28.2 billion year-over-year, reflecting both higher prices and tight cost controls.

As the quarter progressed, the broader context became clearer. Analysts warned of a global “memory chip crunch,” with some predicting shortages through 2027 as demand for AI-ready RAM soars and costs begin “trickling down to consumers.” Micron, now the largest U.S. computer-memory chip maker, emerged as a prime beneficiary, with its market capitalization swelling to about $1.2 trillion and its share price climbing more than tenfold from early 2024 levels.

By earnings day, Micron was confident enough to raise guidance. The company projected fourth-quarter revenue of about $50 billion, plus or minus $1 billion, far above last year’s roughly $11 billion. It also forecast between $49 billion and $51 billion in sales in another outlook, underscoring sustained demand. To secure future supply, Micron increased full-year capital spending to more than $25 billion and inked a deal to provide AI lab Anthropic with memory and storage chips, even joining the startup’s Series H funding round.

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