“Micron beats on earnings and issues strong guidance as data center revenue jumps 11-fold”
What actually happened
Micron's fiscal fourth quarter topped Wall Street's expectations on both earnings and revenue, and the company guided its fiscal first quarter above analyst estimates too. Micron reported earnings per share of $33.42 adjusted versus $31.61 expected, on revenue of $54.23 billion versus $51.07 billion expected. Revenue almost quadrupled in the fiscal fourth quarter from $11.32 billion a year earlier. The growth was powered by soaring AI-driven demand for high-bandwidth memory, where Micron is the only US-based maker.
Key facts
- Q4 adjusted EPS of $33.42 vs. $31.61 expected; revenue of $54.23 billion vs. $51.07 billion expected.
- Total revenue almost quadrupled year over year, from $11.32 billion to $54.23 billion.
- Fiscal Q1 guidance of about $61.5 billion in revenue and $38.15 adjusted EPS, above the $57 billion revenue and $35.40 EPS analysts had expected.
- Fourth-quarter DRAM revenue increased 343% year over year to $39.8 billion, representing 73% of total sales.
- Net income climbed to $37.7 billion, or $32.87 per share, from $3.2 billion, or $2.83 per share, a year earlier.
- The article never states a dollar figure, base-year comparison, or definition for "data center revenue" to substantiate the headline's "11-fold" claim, despite DRAM (343%) and total revenue (~4x) both being disclosed and sourced.
What to watch for
Watch whether Micron's next 10-K or earnings-call transcript publishes the actual data center segment dollar figures behind the "11-fold" claim, since a tiny prior-year base can make even modest absolute growth look explosive in percentage terms. Also watch the HBM capacity race: Micron is investing $250 billion to build two new campuses for making HBM, with the largest breaking ground in Clay, New York, and a first new fab in Boise, Idaho, scheduled to come online next year, which will determine whether this growth rate is sustainable or a short-term supply-crunch artifact. Labor unrest is another thread to track, as hundreds of Micron staffers threatened to strike at its Taiwan factories over labor negotiations and pay, while similar strikes at rivals SK Hynix and Samsung have resulted in bonuses upwards of $500,000.
