Micron Technology shares surged more than 16% in pre-market trading Thursday after the company reported stronger-than-expected fiscal third-quarter results and provided an upbeat outlook. The memory chip maker’s performance underscores sustained demand for artificial intelligence infrastructure.
Revenue reached $9.8 billion for the quarter, exceeding Wall Street analyst estimates and marking a significant year-over-year increase. Profit also came in ahead of forecasts as demand for memory chips rebounded sharply.
The company attributed much of its success to heavy spending by large technology firms on data centers and AI systems, which require large volumes of high-performance memory chips. The trend has allowed Micron to sell more products at improved prices.
Looking ahead, Micron forecast revenue between $10.2 billion and $10.6 billion for the current quarter, signaling continued healthy demand across the technology sector.
Additionally, Micron announced 16 long-term supply agreements covering cloud computing, data centers, and automotive industries. These contracts are expected to generate approximately $22 billion in cumulative revenue over the next several years, providing stable cash flows and reducing exposure to demand volatility.
High bandwidth memory (HBM) products, which are critical for advanced AI servers, are seeing rising demand as more enterprises invest in AI capabilities. The company’s HBM lineup has become a key growth driver.
The positive earnings report lifted other chip stocks as well. Qualcomm rose about 12% pre-market, Intel gained nearly 6%, and shares of AMD and Nvidia also moved higher as investor sentiment returned to the sector after earlier concerns over high valuations and slowing growth.
Micron stock has already posted substantial gains over the past year. The latest earnings reinforce the view that the company will continue benefiting as businesses allocate more capital toward artificial intelligence and data center expansion.