Boise’s Micron reports jaw-dropping sales and profits as its stock price booms
Micron released its latest earnings report, and the results were eye-popping.
The Boise company’s revenue, $23.86 billion for its fiscal second quarter ended Feb. 26, nearly tripled that of the same quarter a year ago — $8.05 billion. Profits for the quarter were up 870% over the same period.
Micron’s board also approved a 30% increase in its quarterly dividend to 15 cents a share.
The memory-chip maker’s boom is showing no signs of slowing down as memory-dependent artificial intelligence takes over the universe. CEO Sanjay Mehrotra said in a news release Wednesday that the company expects significant records again in its fiscal third quarter, projecting revenue of $33.5 billion with gross margin of about 81%.
“In the AI era, memory has become a strategic asset for our customers, and we are investing in our global manufacturing footprint to support their growing demand,” Mehrotra said.
Micron manufactures the high-bandwidth memory chips needed to train and run large language models and other AI systems that have proliferated since the release of OpenAI’s ChatGPT in late 2022. High-bandwidth memory, or HBM, is faster and more complex than traditional dynamic random-access memory.
The company is spending about $200 billion on its domestic expansion, which includes constructing two chip-making factories at its headquarters campus in Southeast Boise, building up to four fabs in New York state, and modernizing its existing fab in Virginia. (Fab is semiconductor-industry shorthand for a fabrication plant.)
In Idaho, the gargantuan plant the company is building off South Federal Way is now several stories tall and clearly visible to drivers on Interstate 84. A banner hanging from the structure says, “Memory made in America. Coming 2026.”
Micron is also expanding abroad. The company has plans for new fabs in Japan and Singapore, and opened one in India in February.
Mehrotra said during an earnings call that the company expects initial wafer output at the first Boise fab in mid-2027. Ground preparation has already begun on the second fab, he said.
The company’s stock price has seen explosive growth, rising by about 350% in just the past year to a historic high of $461.73 on March 18. Shares closed Friday at $422.90.
