Micron Technology Inc. delivered a blockbuster earnings report that underscores the unrelenting appetite for high-bandwidth memory in artificial intelligence applications, projecting first-quarter revenue that could top $12.8 billion as demand outstrips supply. The Boise, Idaho-based chipmaker’s shares rocketed more than 13% in after-hours trading Wednesday, reflecting investor confidence in its pivotal role supplying memory to AI data centers.

Chief Executive Sanjay Mehrotra highlighted the company’s commanding position in high-bandwidth memory, or HBM, during the earnings call. “We are sold out of our HBM capacity through 2026,” Mehrotra stated, emphasizing Micron’s rapid ramp-up in production for next-generation HBM3E products. This scarcity has allowed Micron to command premium pricing amid fierce competition from Samsung Electronics Co. and SK Hynix Inc.

Record Results Amid Supply Constraints

For the fiscal first quarter ended Nov. 28, Micron posted revenue of $10.4 billion, a 93% jump from the year-earlier period and surpassing analyst expectations of $9.87 billion. Net income soared to $4.1 billion, or $3.68 a share, crushing forecasts of $2.86 a share. The results mark Micron’s strongest quarterly performance ever, propelled by soaring demand for DRAM and NAND flash memory in AI servers.

The data center segment, which now accounts for over half of Micron’s revenue, exploded 170% year over year to $7.6 billion. HBM sales alone contributed significantly, with Micron shipping its first 12-layer HBM3E stacks to customers including Nvidia Corp. and Broadcom Inc. Gross margins expanded to 39.5%, up from 26.5% a year ago, as pricing power returned to the memory market.

HBM Ramp Accelerates AI Dominance

Micron’s guidance for the current quarter signals continued momentum, with revenue projected between $12.2 billion and $12.8 billion—above Wall Street’s $11.8 billion estimate—and adjusted earnings per share of $3.60 to $3.90. “AI demand remains robust,” Mehrotra said, pointing to supply tightness extending into 2026. The company expects data center revenue to grow another 100% or more sequentially.

Investors on X echoed the optimism, with posts highlighting Micron’s HBM sellout as a key differentiator. One widely shared update from Micron’s official account noted the Q1 results and linked to full financials, garnering thousands of views. Analysts at IG Bank Switzerland previewed the earnings as a “critical test” for memory market recovery, focusing on HBM volume ramps and gross margin expansion (IG Bank Switzerland).

Navigating Geopolitical and Capacity Hurdles

Beyond AI, Micron’s consumer and automotive segments showed recovery signs. PC unit sales are forecast to rise in the high single digits for calendar 2025, driven by AI PCs, per the earnings transcript (The Motley Fool). Enterprise solid-state drives also gained traction, with revenue doubling year over year.

Yet challenges loom. Micron plans capital spending of $15 billion in fiscal 2026, up from $13 billion prior, to build HBM and advanced DRAM capacity. U.S. investments total $200 billion over two decades, creating 90,000 jobs, as announced with the Trump administration earlier this year. Geopolitical tensions, including U.S. export curbs on China, add risks—China represented 10% of Q1 revenue, down from prior levels.

Competitive Edge in Memory Wars

Micron trails SK Hynix in HBM market share but is closing the gap with Nvidia-qualified products. Bloomberg reported Micron’s “rosy” forecast as evidence of supply shortages enabling higher prices (Bloomberg). Yahoo Finance noted pre-earnings jitters, with shares slipping as investors pondered if AI demand was fully priced in—now clearly undervalued (Yahoo Finance).

Forward-looking, Micron eyes 50% HBM revenue growth in fiscal 2026. “Our 1γ and 1β nodes will deliver industry-leading performance,” Mehrotra affirmed. Posts on X from industry watchers praised the outlook, with one calling it a “pivotal moment for the memory market” aligning with FinancialContent analysis (FinancialContent).

Implications for Semiconductor Supply Chain

The earnings reinforce memory as the AI bottleneck. Nvidia’s Blackwell platform relies heavily on HBM, and Micron’s ramp positions it to capture share from Asian rivals. Investing.com highlighted surging shares on “sharply higher revenue forecasts” tied to AI-led demand (Investing.com).

Wall Street reacted swiftly: Needham raised its price target to $200, citing HBM strength. Micron’s stock, up 168% in 2025 per CNBC, trades at a forward multiple below peers despite superior growth (CNBC). As AI infrastructure spend hits trillions, Micron’s trajectory mirrors the sector’s explosive potential—and its volatility.

Long-Term Fab Investments Pay Off

Micron’s U.S. expansion, including a $100 billion New York megafab, bolsters supply-chain resilience. Fiscal 2025 capex hit $10 billion, funding leading-edge nodes. INDmoney previewed expectations for pricing strength and AI sustainability, now validated (INDmoney).

Looking ahead, Q2 guidance implies 25% sequential growth. With HBM3E leadership and AI tailwinds, Micron is primed for multi-year outperformance in the semiconductor arena.