Micron Technology Stock Surges 10% on Quarterly Revenue Forecast
In Focus
- Micron stock surged 10% on revenue forecast
- The company is negotiating multi-year contracts with customers
- The chipmaker is also experiencing high chip demand from data centers
Micron forecasts quarterly revenue twice as high as analyst predictions. According to Yahoo Finance, Micron Technology’s projection is pegged to rising memory chip prices as supply tightens and demand from AI data centers booms. Micron’s revenue forecast for 2026 caused stock prices to surge by close to 10% in premarket trading on December 18, 2025, following the forecast.
Micron’s Memory Chip Leadership
Micron semiconductors are widely used in data center servers, smartphones, personal computers, and vehicles. The company is among the top global suppliers of high-bandwidth memory (HBM) chips, coming third after Samsung Hynix and Samsung Electronics. HBMs are critical for the training and deployment of generative AI models.
The U.S. semiconductor company expects demand for memory chips to remain high past the 2026 fiscal year. In the medium term, the company expects to meet about 50% to 75% of demand for a few customers. The company says the memory chip shortage will strain smartphone manufacturers.
“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. 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,” Micron’s Chief Business Officer, Sumit Sadana noted as reported by Yahoo Finance.
Recently, Counterpoint Research projected a 2.1% drop in smartphone shipments and a 6.9% increase in smartphone prices. According to the research firm, the price of manufacturing a single smartphone has risen by 20% to 30% for smartphones priced below $200 since the beginning of 2025.
Macron to Increase Capital Spending
Micron reported that it’s in the process of negotiating multi-year contracts with customers. The company is expected to raise its 2026 capital spending from the estimated $18 billion to $20 billion.
“AI-related demand remains the biggest driver for Micron. It not only drives better margin for the company, but also helps non-AI product margins as it prioritizes its supply towards AI-related demand,” Summit Insights Analyst Kinngai Chan said as per Yahoo Finance.
In October 2025, the U.S. memory chipmaker announced plans to exit the Chinese market and stop supplying server data center chips to companies in the Asian country. Micron exited China after it failed to recover from the government ban introduced in 2023.
Growing Demand for Memory Chips
Micron is shifting its production to focus on AI data centers. At the beginning of this month, Micron retired its Crucial RAM Brand after nearly three decades in the market.
“Micron has strategically repositioned its production capacity for the AI sector. As AI demand continues to soar and along with it key components, Micron will be among the winners that can supply those components, which include memory chips,” eMarketer Analyst Jacob Bourne stated as per Yahoo Finance.
The company is experiencing high chip demand from data centers as big cloud companies spend more on computing and cloud services.
