ToplineMicron shares rocketed Wednesday after the chipmaker reported the most profitable quarter in its history, further cementing its role as a beneficiary of the artificial intelligence infrastructure boom.Micron shares rocketed Wednesday.Photo by Jonathan Raa/NurPhoto via Getty ImagesKey FactsMicron shares briefly jumped more than 15% in extended trading Wednesday after it closed the day down a fraction of a percent.Micron reported third-quarter revenue of $41.4 billion, up from $9.3 billion in the same period a year ago, according to a filing.Adjusted diluted earnings per share came in at $25.11, a massive jump from the $1.91 posted in the year-ago quarter, while net income reached $28.24 billion.Micron set its fourth quarter revenue guidance to $50 billion alongside adjusted diluted earnings per share of $31.00.Bulls behind Micron’s stock will likely point to the earnings report as proof the company’s earnings stream will prove more durable than bears fear, according to a note from market insights firm Vital Knowledge, which noted supply and demand conditions for Micron will remain tight for at least the next one and a half years.ContraBears are likely to remain concerned about how Micron can keep up its supply for extreme AI demand, Vital Knowledge’s note added. Micron’s High Bandwidth Memory chips, which allow AI processors to work faster, are completely sold out, as the company has reportedly allocated all of its chip supply for 2026 to commitments with AI data centers. Vital Knowledge also identified management’s expectation for higher capital expenditure ($10 billion in fiscal quarter four) as a potential red flag. Key BackgroundMicron’s stock has been highly volatile recently. A global chip selloff Tuesday pushed the company’s shares down 13%, erasing two days’ worth of gains. JPMorgan analysts said Tuesday the selloff may have been provoked by anxiety around Micron’s earnings, which are usually seen as a bellwether for AI demand. However, Wednesday’s after-hours surge brought shares from about the $1,050 mark to around $1,175. While concerns have mounted over whether Micron’s stock is driven by momentum trading or fundamentals, the chipmaker has traded up more than 260% since the start of the year amid the AI boom and its demand for Micron products.Further ReadingMicron Tumbles 13% As South Korean ETF Warning Fuels Chip Sell-Off (Forbes)