Micron Technology (NASDAQ:MU) shares jumped sharply after the memory chipmaker delivered an upbeat outlook, projecting a significant increase in revenue, profits and record-high margins for the current quarter, underpinned by rising memory prices and robust demand linked to artificial intelligence workloads.

The stock was up more than 9% in premarket trading on Thursday by 04:28 ET, reflecting strong investor reaction to the results and guidance.

For the quarter ended November 27, Micron reported non-GAAP earnings of $4.78 per share, well ahead of the average analyst forecast of $3.94. Revenue climbed to $13.64 billion, compared with $8.71 billion a year earlier and above market expectations of $12.83 billion.

The company has benefited from a sharp recovery in conventional DRAM pricing, alongside growing demand for higher-performance memory products used in generative AI applications.

Looking ahead to the second quarter of fiscal 2026, Micron forecast revenue of $18.7 billion, plus or minus $400 million, comfortably exceeding Wall Street’s consensus estimate of $14.23 billion. At the midpoint, the company expects earnings per share of $8.42, nearly double the consensus forecast of $4.49.

Gross margins are projected to reach a record 68%, representing an 11.2 percentage point increase from the previous quarter. Industry checks across the memory supply chain suggest double-digit quarterly price increases for DRAM—Micron’s main profit driver—in both the current and upcoming quarters, as customers grow increasingly concerned about supply availability through 2026.

“In fiscal Q1, Micron delivered record revenue and significant margin expansion at the company level and also in each of our business units,” Chief Executive Sanjay Mehrotra said in a statement.

Reacting to the results, Mizuho analyst Vijay Rakesh pointed to Micron’s exceptionally strong guidance for the February quarter. “We see MU driving continued top line and earnings upside benefiting from positive pricing in HBM/leading-edge DRAM,” he wrote, raising his target price on the stock to $290 from $270.

Micron expects its financial performance to continue strengthening through fiscal 2026 as it ramps up investment to meet growing demand for memory and storage used in AI systems, the CEO added. Demand for high-bandwidth memory and advanced NAND products tied to AI applications has boosted pricing power, margins and cash generation.

The company reported operating cash flow of $8.41 billion for the quarter, up from $5.73 billion in the previous quarter and $3.24 billion a year earlier. Free cash flow also reached a record high, underscoring the scale of the current upcycle.

Micron Technology stock price

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