Micron Technology on Wednesday projected third-quarter revenue that markedly outstrips Wall Street expectations, attributing the outlook to a sharp pickup in demand for memory and storage products used in artificial intelligence hardware. The company said customers are committing to long-term data center builds as technology firms accelerate efforts toward artificial general intelligence, driving rapid expansion in AI data center capacity and heightened needs for advanced memory solutions.
For the third quarter, Micron forecast revenue of $33.5 billion, plus or minus $750 million. That compares with analysts' consensus of $24.29 billion, based on data compiled by LSEG. The company reported $23.86 billion in revenue for the second quarter ended February 26, a figure that exceeded the $20.07 billion analysts had expected for that period.
Micron emphasized its position among the small group of suppliers able to provide high bandwidth memory (HBM) chips that are central to AI systems. It noted that it is one of three major HBM suppliers, alongside South Korea's Samsung and SK Hynix, underscoring the concentrated supplier base for this class of memory.
Alongside the upbeat revenue outlook, Micron raised its capital expenditure forecast for fiscal 2026 to $25 billion, up from a prior projection of $20 billion. The company said it expects capital spending to climb further in fiscal 2027. Construction-related spending is set to increase by more than $10 billion from a year earlier as Micron expands manufacturing facilities around the world.
Micron's shares have advanced by more than 61% so far this year. The company's board also approved a 30% increase to its quarterly dividend, a move that reflects the board's willingness to return more cash to shareholders amid the investment cycle the company is undertaking.
These developments together paint a picture of a company responding to robust, AI-driven demand by accelerating investment in capacity while also enhancing shareholder returns. The upward revision to capital expenditure and the substantial revenue guidance gap versus consensus highlight the extent to which Micron expects AI-related demand to affect its near-term top line.
Sectors potentially affected:
- Semiconductor manufacturing and equipment
- Data center construction and operations
- Cloud and AI infrastructure providers