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Micron raises forecasts as AI boosts memory chip demand
The company now expects quarterly revenue of $11.2 billion, plus or minus $100 million, compared with its previous forecast of $10.7 billion, plus or minus $300 million.
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Reuters - Mon, 11, Aug 2025
- 13:11 EDT
- 11
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FILE PHOTO: Sanjay Mehrotra, CEO of Micron Technology Inc., holds a chip on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 26, 2024. / REUTERS/Brendan McDermid/File Photo
Micron Technology on Aug. 11 raised its forecast for fourth-quarter revenue and adjusted profit, banking on surging demand for its memory chips used in artificial intelligence infrastructure, sending its shares up about 3 percent.
Semiconductor makers such as Micron have seen a surge in orders for their high-bandwidth memory (HBM) chips due to their intensive data-processing capabilities, as large tech firms ramp up AI data center investments.
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The company now expects quarterly 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 percent, plus or minus 0.5 percent, for the fourth quarter, compared with its prior expectation of 42 percent, plus or minus 1 percent.
The company said the revised forecast reflects improved pricing, particularly for dynamic random access memory or DRAM products.
"We look at all of our different end markets around the world, the pricing trends have been robust, and we have had great success in being able to push that pricing up," Sumit Sadana, Micron's chief business officer, said at an industry conference on Aug. 11.
Supply constraints in HBM production and strong AI demand have enabled Micron to command higher prices for its products, representing a shift where historically memory chipmakers had to accept thinner margins, eMarketer analyst Jacob Bourne said.
Reuters exclusively reported on Aug. 11 Nvidia supplier SK Hynix sees the market for specialized AI memory chips growing 30 percent a year until 2030.
The imposition of a 100 percent tariff on some chips imported into the U.S. could hit 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.
Micron expects adjusted fourth-quarter earnings of $2.85 per share, plus or minus 7 cents, compared with its earlier expectation of $2.50, plus or minus 15 cents.
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