Micron Technology Raises Q4 Forecast Amid Surging AI-Driven Demand for Memory Chips

Micron Technology raises quarterly results forecast on AI-driven demand

Aug 11 (Reuters) - Micron Technology (MU.O), opens new tab on Monday raised its forecast for fourth-quarter revenue and adjusted profit, due to surging demand for its memory chips used in artificial intelligence infrastructure, sending its shares up 5% before the bell. The company now expects revenue of $11.2 billion, plus or minus $100 million, compared with its previous forecast of $10.7 billion, plus or minus $300 million. It expects adjusted earnings per share of $2.85, plus or minus 7 cents, compared with its earlier expectation of $2.50, plus or minus 15 cents. Semiconductor makers such as Micron have seen a surge in orders for their high-bandwidth memory chips due to their intensive data-processing capabilities, as large tech firms scaled up their financial commitments to AI data centers. Reporting by Zaheer Kachwala in Bengaluru; Editing by Leroy Leo Our Standards: The Thomson Reuters Trust Principles., opens new tab

Micron raises forecasts as AI boosts memory chip demand

Aug 11 (Reuters) - Micron Technology on Monday raised its forecast for fourth-quarter revenue and adjusted profit, due to surging demand for its memory chips used in artificial intelligence infrastructure, sending its shares around 5% higher before the bell. Semiconductor makers such as Micron (MU.O), opens new tab have seen a surge in orders for their high-bandwidth memory chips due to their intensive data-processing capabilities, as large tech firms scaled up their financial commitments to AI data centers. The company now expects revenue of $11.2 billion, plus or minus $100 million, compared with its previous forecast of $10.7 billion, plus or minus $300 million. Micron also nudged up its adjusted gross margin forecast to 44.5%, plus or minus 0.5% compared with its previous expectation of 42%, plus or minus 1.%. The company said the revised forecast reflects improved pricing, particularly for dynamic random access memory or DRAM products, alleviating investor concerns about pricing pressures - an issue which has long dogged the memory chip market. Some analysts say the company's margins could see further growth, owing to its transition to higher-margin chips and higher prices for consumer memory processors. Reuters exclusively reported on Monday Nvidia (NVDA.O), opens new tab supplier SK Hynix (000660.KS), opens new tab sees the market for specialized AI memory chips growing 30% a year until 2030. The imposition of a 100% tariff on some chips imported into the U.S. could potentially affect market growth but the duties will not apply to companies manufacturing in the country or have committed to do so. In June, Micron said it is expanding its U.S. investments by $30 billion, totaling $200 billion amid a push by the Trump administration to strengthen America's manufacturing sector. Micron expects adjusted earnings per share of $2.85, plus or minus 7 cents, compared with its earlier expectation of $2.50, plus or minus 15 cents. Reporting by Zaheer Kachwala in Bengaluru; Editing by Leroy Leo Our Standards: The Thomson Reuters Trust Principles., opens new tab

Micron Technology raises quarterly results forecast on AI-driven demand - The Economic Times

Micron Technology on Monday raised its forecast for fourth-quarter revenue and adjusted profit, due to surging demand for its memory chips used in artificial intelligence infrastructure, sending its shares up 5% before the bell. The company now expects revenue of $11.2 billion, plus or minus $100 million, compared with its previous forecast of $10.7 billion, plus or minus $300 million. It expects adjusted earnings per share of $2.85, plus or minus 7 cents, compared with its earlier expectation of $2.50, plus or minus 15 cents. Semiconductor makers such as Micron have seen a surge in orders for their high-bandwidth memory chips due to their intensive data-processing capabilities, as large tech firms scaled up their financial commitments to AI data centers.

Why Is Micron Technology Stock Gaining Monday? - Micron Technology (NASDAQ:MU)

Micron Technology MU stock gained on Monday after the company lifted its fourth-quarter fiscal 2025 guidance, citing stronger-than-expected pricing, particularly in DRAM, and solid operational execution. The company expects a quarterly revenue of $11.1 billion-$11.3 billion (up from prior $10.4 billion-$11 billion) versus an analyst consensus estimate of $10.73 billion. It now expects quarterly adjusted EPS of $2.78-$2.92 (up from prior $2.35-$2.65) versus an analyst consensus estimate of $2.44. Also Read: Micron Launches First Space-Ready Memory Chip To Power AI Missions In Orbit The revision signifies continued AI frenzy as the U.S. big tech giants keep splurging on their AI ambitions. Meta Platforms META, Microsoft MSFT, and Alphabet GOOGL Google are set to pour more than $250 billion into AI infrastructure between 2025 and 2026, with Meta guiding for nearly $100 billion in 2026 capex, Google boosting its 2025 outlook to $85 billion, and Microsoft's spending trending above $100 billion annually. Wedbush's Dan Ives called it a "watershed moment" with years of explosive AI growth ahead. At the same time, JPMorgan sees under-the-radar hardware and infrastructure players as primary beneficiaries of this investment surge. Last week, Apple AAPL announced an additional $100 billion U.S. investment. Micron stock gained over 47% year-to-date, topping the NASDAQ Composite Index's over 11% returns. This was driven by strong demand for its memory chips, particularly High-Bandwidth Memory (HBM) and specifically HBM3E. HBM3E powers AI accelerators like Graphics Processing Units (GPUs) and Application-Specific Integrated Circuits (ASICs). Micron supplies HBM3E for Nvidia's NVDA Blackwell and Rubin GPU lines and to other customers for use in GPUs and ASICs. Price Action: MU stock is trading higher by 4.29% to $124.00 at last check on Monday. Read Next: Nvidia, Broadcom Lead Semiconductor Surge As AI Demand, Tariff Relief And Big Tech Investments Fuel Momentum Photo via Shutterstock MUMicron Technology Inc$123.794.12%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum82.80Growth53.55Quality73.33Value62.97Price TrendShortMediumLongOverviewAAPLApple Inc$225.88-1.52%GOOGLAlphabet Inc$200.02-0.70%METAMeta Platforms Inc$771.570.30%MSFTMicrosoft Corp$520.42-0.31%NVDANVIDIA Corp$182.04-0.36%Market News and Data brought to you by Benzinga APIs

Why Is Micron Technology Stock Climbing Tuesday? - Micron Technology (NASDAQ:MU)

Micron Technology MU extended gains Tuesday after boosting its August-quarter outlook, fueled by surging demand and pricing for AI-focused memory chips, signaling continued momentum in the DRAM market through 2026. JP Morgan analyst Harlan Sur maintained Micron Technology MU with an Overweight rating and raised the price forecast from $165 to $185 on Monday. Sur said Micron delivered a positive pre-announcement for its August quarter, raising revenue, gross margin, and EPS guidance on stronger-than-expected DRAM (or dynamic random access memory) pricing across AI/datacenter, smartphone, and PC markets. Also Read: Micron Stock Jumps After Boosting Sales And Profit Outlook On Soaring AI Chip Demand Micron now expects revenue of $11.2 billion versus its prior $10.70 billion midpoint, adjusted gross margin of 44.5% versus 42%, and adjusted EPS of $2.85 versus $2.50. Sur attributed the upside to sustained DRAM strength, improved DDR5 and LPDDR5 contract pricing, and robust HBM (or high-bandwidth memory) demand, with HBM revenue nearing an $8 billion annualized run rate. He highlighted that the HBM3e 12-Hi yield ramp exceeded the 8-Hi ramp and already reached crossover in volume, with visibility to sell out 2026 HBM supply, including HBM3e and HBM4. Tight supply in non-AI DRAM, partially driven by the HBM trade ratio, adds upward pricing pressure, while DDR4 end-of-life shortages contribute marginally. Sur expects DRAM pricing strength to continue through 2025 and into 2026, supported by substantial AI capex and constrained leading-edge supply from the HBM4 ramp. Citing solid execution, improving supply/demand fundamentals, and margin expansion potential, Sur raised his estimates and increased his price forecast from $165 to $185. His new forecast is based on $17 in annualized earnings power in second-half of 2026, applying a 10-12x P/E multiple consistent with mid-to-late cycle valuations for memory stocks. He maintained an Overweight rating, seeing Micron well-positioned for fiscal 2026 and calendar 2026, with strong momentum in high-margin businesses and market share gains. Price Action: MU stock is trading higher by 2.75% to $127.12 at last check on Tuesday. Read Next: DRAM Prices Soar As Chinese Manufacturers Shift Focus To AI Chips Image via Shutterstock MUMicron Technology Inc$126.812.49%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum82.80Growth53.55Quality73.33Value62.97Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

This Artificial Intelligence (AI) Stock Is Growing Fast and Still Trades at Just 10 Times Earnings | The Motley Fool

Semiconductor maker Micron just raised its guidance thanks to the booming AI data center demand for its memory chips. Micron Technology (MU -3.64%) is playing a central role in the adoption of artificial intelligence (AI) technology: Its memory chips are being used by top chip designers such as Nvidia and Advanced Micro Devices in their data center graphics cards. Micron's high-bandwidth memory (HBM) suits the technical needs of AI accelerator graphics processing units (GPUs) because they are capable of moving huge amounts of data with low lag, and are more energy efficient than conventional memory chips. And given the high demand for AI chips, demand for Micron's HBM chips has also been robust, which explains why its growth has been remarkable in recent quarters. Importantly, it appears Micron's terrific growth will persist thanks to its lucrative opportunity in the HBM space -- and its latest guidance update provides further evidence to that effect. On Monday, Micron increased its guidance for its fiscal 2025 fourth quarter. For the period, which will end Aug. 28, it now expects revenues of $11.1 billion to $11.3 billion, up from a range of $10.4 billion to $11 billion previously. At the midpoint, that's a boost of $500 million. Additionally, management bumped up its non-GAAP earnings guidance from $2.50 per share to $2.85 per share. Those figures would equate to a year-over-year increase of 44% in revenue and a 141% jump in adjusted earnings per share. Micron management says that "improved pricing, particularly in DRAM, and strong execution" are the reasons behind its improved guidance. Booming demand for HBM is a key factor that's allowing memory makers to increase prices. According to one estimate, the HBM market's revenue could double in 2024 to $34 billion, driven by a combination of higher shipments and increased pricing. Specifically, production capacity constraints are expected to push up the price of HBM by 15% to 20% in the calendar third quarter, which would be sharper than the 5% to 10% growth seen in the previous quarter. At the same time, the next iterations of AI graphics cards designed by Nvidia and AMD will be equipped with bigger HBM chips. Nvidia, for instance, is packing 288 gigabytes (GB) of HBM into its Blackwell Ultra B300 GPU, up from the 192GB configuration of the B200. Similarly, AMD is bumping up the HBM capacity of its MI355X and MI350X accelerators to 288GB; the previous generation MI325X had 256GB. What's more, AMD is planning to increase the HBM capacity of its next-generation MI400X GPUs to a whopping 432GB. Given all that, demand for HBM is likely to remain solid. Micron's peer SK Hynix is forecasting annualized increases of 30% in the HBM market through 2030. AI, therefore, can be expected to remain a solid long-term growth driver for Micron, especially considering the company's improving share of this market. The memory specialist says it's supplying HBM chips "in high volume" to four major customers, which indicates that custom AI chipmakers such as Broadcom and Marvell Technology are also among its big clients. Not surprisingly, Micron's HBM market share is expected to jump to 24% by the end of 2025 as compared to around 20% earlier this year. That potential improvement in Micron's market share, along with the outstanding growth of the HBM market, explains why analysts have increased their revenue growth expectations from the company. Even better, Micron's healthy top-line growth will drive a big jump in the company's bottom line since demand for HBM is outpacing supply. The favorable supply-and-demand dynamic should lift memory prices and supercharge Micron's earnings, which is why buying the stock right now is a no-brainer. Micron reported $1.30 per share in earnings in its fiscal 2024. The following chart makes it clear that its earnings are on track to grow significantly in the current fiscal year and beyond. The best part for investors is that Micron stock is trading at just 10 times forward earnings, which is dirt cheap considering the earnings growth that it's projected to deliver. Its forward earnings multiple is significantly lower than the tech-laden Nasdaq-100 index's multiple of 30. Ideally, the market will reward the AI-fueled growth that this chipmaker is set to deliver with a higher earnings multiple. For instance, an earnings multiple of even 20 after a year could send its stock price to $244 (based on its fiscal 2026 earnings estimate of $12.22 per share). That would be nearly double its current stock price. So, investors should consider buying this AI stock hand over fist as it has the potential to fly higher, even after recording a 52% gain so far in 2025.

Micron Technology raises quarterly results forecast on AI-driven demand

(Reuters) -Micron Technology on Monday raised its forecast for fourth-quarter revenue and adjusted profit, due to surging demand for its memory chips used in artificial intelligence infrastructure, sending its shares up 5% before the bell. The company now expects revenue of $11.2 billion, plus or minus $100 million, compared with its previous forecast of $10.7 billion, plus or minus $300 million. It expects adjusted earnings per share of $2.85, plus or minus 7 cents, compared with its earlier expectation of $2.50, plus or minus 15 cents. Semiconductor makers such as Micron have seen a surge in orders for their high-bandwidth memory chips due to their intensive data-processing capabilities, as large tech firms scaled up their financial commitments to AI data centers. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Leroy Leo)