Micron Technology (NASDAQ: MU) shares have experienced a significant surge, driven by robust demand for its memory chips, particularly those essential for artificial intelligence (AI) data centers. The company’s stock rose after it issued a strong revenue forecast for its fiscal fourth quarter, further solidifying investor confidence in its position within the burgeoning AI market.
In premarket trading on June 26, Micron’s shares rose by 2%, and further climbed nearly 4% in after-hours trading to reach $132.10 following its earnings announcement. Year-to-date, Micron’s stock has outperformed major tech players like AMD and Nvidia, soaring by 51.2%.
The substantial growth is primarily attributed to High-Bandwidth Memory (HBM) chips, a critical component for powering AI accelerators. Micron reported an impressive nearly 50% quarter-over-quarter increase in its HBM sales during the fiscal third quarter of 2025. The company is a key HBM supplier alongside South Korea’s SK Hynix and Samsung, and has notably positioned itself as “the only kid on the block shipping HBM3E at scale.”
For its fiscal third quarter, ended May 29, 2025, Micron reported record revenues of $9.30 billion, surpassing analyst estimates of $8.87 billion. The company also posted adjusted earnings per share (EPS) of $1.91, exceeding expectations of $1.59 to $1.60. Data center revenue, in particular, more than doubled year-over-year.
Looking ahead, Micron forecasts its fiscal fourth-quarter revenue to be approximately $10.7 billion, plus or minus $300 million, significantly higher than analysts’ average estimate of $9.88 billion. The company also projects an adjusted gross margin of roughly 42% and adjusted EPS between $2.35 and $2.65 for the upcoming quarter.
Micron plans to continue its aggressive investment in HBM technology to meet the escalating demand from major AI chip developers like Nvidia and AMD. The company recently announced the shipment of its next-generation HBM4 chips and has committed to nearly $200 billion in U.S. manufacturing and research and development investments, with $150 billion earmarked for domestic memory manufacturing and $50 billion for R&D.
Analysts have reacted positively, with firms like Morgan Stanley and UBS raising their price targets for Micron stock, signaling continued optimism for its performance in the AI-driven memory market. Micron Chief Business Officer Sumit Sadana noted healthy demand for the second half of the calendar year, indicating sustained momentum.
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