11.08.2025 20:04
Micron Technology significantly boosted its fourth-quarter revenue projection on Monday, increasing it to a remarkable $11.2 billion – a substantial upgrade from the previously estimated $10.7 billion. This upward revision reflects the unexpectedly strong demand for its memory chips, crucial components in the rapidly expanding artificial intelligence sector. The company now anticipates a margin of error of just $100 million, significantly tighter than the previous estimate of ±$300 million.
Driven by the burgeoning AI market, Micron's revised forecast also includes a higher adjusted gross margin projection of 44.5%, surpassing the earlier prediction of 42%. Furthermore, earnings per share are now projected at $2.85, a considerable increase from the previous estimate of $2.50. This positive news immediately impacted Micron's stock price, leading to an approximate 3% surge in early trading, demonstrating investor confidence in the company's ability to capitalize on the AI boom.
This optimistic outlook is primarily fueled by increased pricing across Micron's memory chip portfolio, particularly its dynamic random access memory (DRAM) products. The indispensable nature of DRAM in AI computing, where rapid data storage, retrieval, and processing are paramount, ensures consistent demand. However, the most significant contribution comes from the explosive demand for high-bandwidth memory (HBM) chips. These advanced chips, crucial for next-generation AI data centers, offer vastly superior data transfer speeds compared to traditional DRAM, enabling real-time processing of enormous datasets for applications ranging from large language models to autonomous driving systems.
According to Micron's Chief Business Officer, Sumit Sadana, the company successfully implemented price increases without experiencing a corresponding drop in demand. He highlighted robust pricing trends and considerable success in raising prices across their global markets at a recent industry conference. Industry analysts attribute this pricing power to the currently tight supply of HBM chips. The sophisticated manufacturing processes required for HBM production are incredibly complex, limiting the number of companies globally capable of producing them, thus further solidifying Micron's position in this lucrative market.
