Micron reports Q2 revenue of $23.9b, tops estimates

Micron Technology reported Q2 revenue of US$23.9 billion, beating an estimate of US$20.1 billion as demand for memory chips used in AI hardware surged, Reuters said.

The company forecast Q3 revenue of US$33.5 billion, plus or minus US$750 million, vs. analysts’ average estimate of US$24.3 billion, according to LSEG data.

Reuters said customers are committing to long-term data center investments as technology firms pursue artificial general intelligence, driving a rise in demand for advanced memory and storage.

Micron is one of the only three major suppliers of high-bandwidth memory (HBM) chips essential to AI, along with Samsung Electronics and SK Hynix.

Its board approved a 30% increase to the quarterly dividend.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

This earnings beat came from contracts signed earlier

The revenue jump did not come out of nowhere. Micron had already sold out its full calendar 2026 supply of high-bandwidth memory (HBM) chips, specialized memory used in AI processors, through long-term contracts 1.
Those deals gave Micron rare visibility. The company said it has finished price and volume agreements for its entire calendar 2026 HBM output, including HBM4 (the next-generation version of HBM) 2.
Micron also charged more. In the prior quarter, the company said DRAM (dynamic random-access memory) prices rose 20% sequentially 2.
To keep enough supply for AI chips and data centers, Micron said it will stop selling memory and other parts directly to consumers 3.

Micron’s US$200 billion expansion plan raises the stakes for the memory industry

Micron has laid out about US$200 billion in planned capacity expansion, a bet that AI-driven memory demand will keep going 1.
Micron also lifted its fiscal 2026 capital expenditure plan to about US$20 billion as it pushes to add AI-focused capacity 4.
New construction will take time. Micron said it will add no new fab (semiconductor factory) cleanroom capacity in 2026, and it expects first wafer output from its first Idaho fab in mid-calendar 2027 5.
Supply may stay tight in the near term. Over time, wider industry buildouts could ease shortages and squeeze pricing 1.