Micron Stock Hardly Budges After AI-Fueled Q4 Beat, But Retail Bulls Eye Bigger Gains

Memory chipmaker Micron Technology, Inc. (MU) stock rose moderately in the after-hours session on Tuesday following quarterly results. The stock ended the extended session up 0.44% at $167.15 and was the most actively traded stock, with 11.83 million shares exchanging hands.

Retail investors on Stocktwits relished the results of the company, with sentiment toward Micron stock moving further into ‘extremely bullish’ territory (93/100) by late Tuesday. The message volume on the stream remained at ‘extremely high’ levels. The 24-hour message volume change leading up to late Tuesday was 566%.

Micron’s key metrics for the fourth quarter of the fiscal year 2025 are as follows:

1. Adjusted earnings per share (EPS): $3.03 Vs. $2.86 (Fiscal.ai-compiled consensus)
2. Revenue: $11.32 billion Vs. $11.15 billion consensus
3. Adj. gross margin: 45.7% Vs. Guidance of 44.5%, plus or minus 0.5%

The results also exceeded the bumped-up guidance the company issued in mid-August. The revenue growth accelerated to 46% from the 37% pace seen in the third quarter. The Cloud Memory business unit’s revenue soared over 200% to $4.54 billion, while the core data center business experienced a 23% decline in revenue to $1.58 billion. Mobile and Clients unit’s revenue was up about 25% to $3.76 billion.

Micron CEO Sanjay Mehrotra said the company remains uniquely positioned to capitalize on the opportunities presented by artificial intelligence (AI). The company spent $4.93 billion in capital expenditures in the fourth quarter and $13.8 billion for the year. CFO Mark Murphy said that capital expenditures (capex) will decrease to $4.5 billion in the first quarter, according to transcripts provided by Koyfin.

Hedge fund manager Ryan Lee, senior vice president of product and strategy at Direxion, said Micron’s earnings beat was “pivotal,” according to comments published in The Wall Street Journal. According to Lee, the company faced “lofty expectations” after the stock’s 41% gain over the past month; with strong data center revenue and expanded capital spending, Micron is set for further AI-driven gains. The analyst believes MU stock remains undervalued amid modest after-hours gains.

Micro looks ahead to revenue of $12.50 billion, plus or minus $300 million, for the first quarter of the next fiscal year, and a gross margin of 51.5%, plus or minus 1 percentage point. It guided to adjusted EPS of $3.75, plus or minus $0.15. Analysts, on average, estimate adjusted EPS and revenue of $3.03 and $11.78 billion, respectively.

Making sense of the muted stock move to the earnings, one bullish watcher said it was priced in, adding that he expects options to “get wrecked” this week.

Another user suggested the stock is undervalued even with the year’s run-up. “This stock could hit $270 this time next year at projected 28 % YoY growth, which I think is a low estimate for the rate of memory demand going on today,” they said.

Micron stock has gained more than 98% this year.

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