Micron Technology reported a sharp rise in revenue and profitability for its fiscal second quarter, driven by strong demand for memory used in artificial intelligence systems. Despite the results, the company’s stock declined roughly 15% in the days following the announcement.
Micron generated $23.86 billion in quarterly revenue, nearly tripling year-over-year, and issued guidance pointing to gross margins of around 80% in the next quarter. The performance reflects tight supply conditions in the memory market, where demand from AI chipmakers continues to outpace production capacity.
The company operates in a highly concentrated market alongside SK Hynix and Samsung Electronics, supplying high-bandwidth memory critical for processors from firms such as Nvidia and Advanced Micro Devices. These chips power large-scale AI workloads, including model training and inference.
Micron’s CEO noted that supply constraints remain significant, with some customers receiving only a portion of their required memory. The imbalance has supported pricing and margins but also highlights ongoing capacity limitations across the semiconductor supply chain.
Analysts from firms including Bank of America, Morgan Stanley, and JPMorgan Chase raised their price targets following the report. However, investor concerns about peak margins, capital expenditure, and recent stock gains contributed to profit-taking.
