Micron raises Q4 forecast to $11.2b on stronger chip prices

Micron Technology raised its revenue and earnings forecast for the fiscal fourth quarter, citing improved pricing, particularly in DRAM.

The US-based chipmaker now expects sales of US$11.2 billion, plus or minus US$100 million, up from its previous projection of US$10.7 billion, plus or minus US$300 million.

Adjusted earnings per share are forecast at US$2.85, plus or minus 7 cents, compared to the earlier estimate of US$2.50, plus or minus 15 cents.

Micron also said its adjusted gross margins will reach 44.5%, plus or minus half a percentage point, slightly higher than the previously projected 42%, plus or minus 1%.

The company cited the outlook increase to higher prices and strong execution, with growth fueled by high-bandwidth memory, a type of DRAM used in AI computing.

Micron shares rose 5.2% in premarket trading and had climbed 41% in 2024 through last week.

Further details are expected from chief business officer Sumit Sadana at the 2025 Keybanc Technology Conference on August 11, 2025.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ AI demand is reshaping memory chip market dynamics beyond traditional cycles

Micron’s improved pricing reflects a broader industry transformation where AI applications are driving unprecedented demand for specialized memory components.

The semiconductor industry is projected to reach $697 billion in sales by 2025, with generative AI chip sales alone expected to exceed $150 billion1.

Memory chips are particularly critical for AI workloads, leading to what industry analysts describe as “uneven growth” where companies serving AI markets significantly outperform traditional segments1.

This AI-driven demand is creating supply constraints for high-bandwidth memory, the specific product category Micron highlighted, as these components require complex manufacturing processes that limit production capacity.

Unlike traditional memory market cycles that were driven by consumer electronics and PC demand, the current cycle is being sustained by data center build-outs and AI infrastructure investments that show no signs of slowing.