Micron predicts higher revenue in fourth quarter due to strong demand for AI memory chips.

From Yahoo Finance: 2025-06-25 16:07:00

Micron Technology forecasts fourth-quarter revenue above Wall Street estimates due to strong demand for its high-bandwidth memory (HBM) chips used in AI data centers. The company reported a nearly 50% jump in third-quarter sales of HBM chips, investing further in this technology. Demand for AI chips continues to rise with investments from companies like Google.

Micron’s Chief Business Officer, Sumit Sadana, stated that tariff-related pull-ins in the third quarter were modest, not causing concern. He anticipates healthy demand for the rest of the year. Micron also expects its market share in HBM chips to match that of DRAM chips by the second half of 2025.

The company introduced a new business segment, “cloud memory business unit,” focusing on products for hyperscalers and HBM chips for fast AI tasks. Micron anticipates fourth-quarter revenue of $10.7 billion, above analysts’ estimates. For the third quarter, revenue was $9.30 billion, with earnings per share at $1.91, surpassing expectations.

Read more: Micron forecasts revenue above estimates on AI-driven memory chip demand