Micron Technology has forecasted third-quarter revenue above Wall Street estimates, driven by strong demand for its high-bandwidth memory (HBM) chips used in AI models. The company’s shares rose 2% in after-hours trading.
AI demand has significantly boosted the need for Micron’s HBM chips, a type of dynamic random access memory essential for advanced AI systems. The technology giant expects sequential growth throughout calendar 2025 as it ramps up capacity and market share in HBM.
Micron, which also offers flash memory NAND chips, expects DRAM and NAND demand growth in both data center and consumer-oriented markets, with improved profitability in fiscal 2025. All of its HBM chips are sold out for calendar year 2025.
The company’s strong forecast has exceeded analyst expectations on revenue and earnings. However, Micron has not included the impact of potential new tariffs imposed by US President Donald Trump in its forecast due to uncertainty around timing and implementation. The company intends to pass on any costs to customers.
Micron expects revenue of $8.80 billion for the third quarter, plus or minus $200 million, beating an estimate of $8.5 billion. Its earnings per share was $1.56, above an estimate of $1.42 per share.
Source: https://www.reuters.com/technology/micron-forecasts-upbeat-quarterly-revenue-demand-al-memory-chips-2025-03-20