Micron beats on earnings and issues strong guidance as data center revenue jumps 11-fold

Micron reported better-than-expected quarterly results on Wednesday as the memory maker continues to benefit from soaring demand for AI infrastructure. The stock rose slightly in extended trading.

Revenue almost quadrupled in the fiscal fourth quarter from $11.32 billion a year earlier, according to a statement .

For the fiscal first quarter, Micron said it expects revenue of about $61.5 billion and adjusted earnings per share of $38.15. Analysts polled by LSEG had expected $35.40 in adjusted earnings per share on $57 billion in revenue.

Micron's stock has soared more than 500% in the past year, benefiting from a worldwide supply crunch caused by historic levels of demand for memory chips needed for artificial intelligence models and workloads. The shortage has led to a spike in memory costs and resulted in increased prices for consumer electronics like Apple 's iPads and MacBooks.

Hendi Susanto, portfolio at Gabelli Funds, said in an email after the release that it was "another strong beat and raise for Micron."

"At this point, I have not heard any negative data points pointing to the memory cycle reversing toward a decline anytime soon for the foreseeable future," Susanto wrote.

Micron is the only U.S.-based maker of high-bandwidth memory, HBM, made up of stacks of general-purpose dynamic random-access memory, or DRAM. Fourth-quarter DRAM revenue increased 343% from a year ago to $39.8 billion, representing 73% of total sales.

CEO Sanjay Mehrotra said on the earnings call that the company has a "strong roadmap for future HBM products" and is working with Nvidia on the industry's "first custom HBM implementation."