Micron Issues Strong Forecast Boosted by AI Demand

Micron Technology has issued an optimistic revenue forecast for its fiscal fourth quarter, driven by soaring demand for memory components used in artificial intelligence (AI) systems.

In a statement released on June 25, Micron projected Q4 revenue of approximately $10.7 billion, well above analysts' consensus estimate of $9.89 billion. The announcement triggered a late-session stock price rally as investors responded positively to the stronger-than-expected outlook.

The company cited rising demand for high-bandwidth memory (HBM) and other advanced components essential for powering and training AI models. As AI software grows increasingly complex, the need for faster and more efficient memory solutions continues to expand. Micron expects this trend to drive sustained market growth, contributing to a recovery in its profit margins, which had weakened in previous quarters.

"Our fiscal 2024 revenue is on track to reach a record high," said Micron CEO Sanjay Mehrotra. "We are making disciplined investments to strengthen our technology leadership and world-class manufacturing capabilities, ensuring we meet the accelerating memory demand driven by AI advancements."

Micron also stated that its expected Q4 earnings per share (EPS), excluding certain items, would reach around $2.50—surpassing the earlier forecast of $2.03.

For the fiscal third quarter ending May 29, Micron reported a 37% year-over-year sales increase, totaling $9.3 billion. This exceeded Wall Street expectations of $8.85 billion. Adjusted EPS came in at $1.91, also beating the average estimate of $1.60.

Commenting on the company's broader market strategy, Dan Morgan, Senior Portfolio Manager at Synovus, noted that in addition to expanding AI-related revenue streams, Micron is aiming to increase memory shipments for applications in electric vehicles and gaming hardware.