Catenaa, Thursday, December 18, 2025- Micron Technology forecast second-quarter adjusted profit at nearly double than expected as prices soar for memory chips amid tight supplies and booming AI demand.
Micron said it expected adjusted profit of $8.42 per share, plus or minus 20 cents, versus analyst estimates of $4.78 per share, according to LSEG data.
Micron’s chips are fundamental components in everything from data center servers and personal computers to smartphones and vehicles.
In a conference call with investors, Micron CEO Sanjay Mehrotra said he expects memory markets to remain tight past 2026 and that in the medium term, Micron expects to meet only half to two-thirds of demand from several key customers.
Reuters previously reported that a memory chip crunch is pressuring smartphone makers. In an interview with Reuters on Wednesday, Sumit Sadana, Micron’s chief business officer, declined to specify which customers would not receive the chips they sought.
“It is inevitable in this environment that lots of customers across all segments will see an impact on their ability to procure the amount of memory they want to procure,” Sadana said. “I don’t know of any customer that is getting 100% of what they want from us – and there are many, many that are getting substantially less than what they feel they need.”
The company projected revenue for the current quarter at $18.70 billion, plus or minus $400 million, compared with analysts’ average estimate of $14.20 billion, according to data compiled by LSEG.
Micron stock surged over 15% on Thursday as investors took the news positively. The stock is up by over 208% so far this year.
Micron executives said the company is negotiating multiyear contracts with key customers and will increase its 2026 capital expenditure plans to $20 billion from an earlier $18 billion estimate.
