Micron Boosts Forecast Amid Rising AI Chip Demand
August 12, 2025 | New York, United States – Micron Technology, Inc. has raised its fourth-quarter forecast as strong demand for memory chips continues to climb, driven by rapid growth in artificial intelligence (AI) infrastructure.
The company now expects revenue of $11.2 billion, plus or minus $100 million. This is up from its previous projection of $10.7 billion. It also raised its adjusted earnings forecast to $2.85 per share, compared to $2.50 in its earlier guidance.
Following the announcement, Micron’s stock rose by about 3%.
Micron’s Chief Business Officer, Sumit Sadana, said the company is seeing solid momentum across global markets. “We’ve had great success pushing up pricing, especially for DRAM,” he noted at an industry event.
Micron also lifted its adjusted gross margin outlook to 44.5%, an increase from the prior estimate of 42%. This improvement comes from stronger pricing and a rise in demand for high-performance memory chips.
HBM (high-bandwidth memory) chips have become essential for powering AI systems. These chips allow faster processing of large data sets, making them critical for tech companies building next-gen data centers.
Major players like Microsoft and Amazon are scaling up their AI operations, which increases the need for efficient memory. As a result, chipmakers such as Micron have received a sharp rise in orders.
According to a Reuters report, the market for AI memory chips is to grow by 30% annually through 2030. This growth gives suppliers like Micron a long runway to expand.
Tight supply in the HBM market has also helped. With limited availability, Micron has been able to charge higher prices, reversing a trend that typically favored lower margins in memory manufacturing.
The U.S. government’s proposed 100% tariff on certain imported chips presents a potential challenge. However, companies that produce or invest in domestic manufacturing will avoid these duties.
Micron is in a strong position. In June, it pledged an additional $30 billion investment in U.S. production, raising its total commitment to $200 billion. This move supports its long-term strategy and protects it from trade-related risks.
The company’s revised forecast highlights how AI is reshaping the semiconductor industry. With rising demand and tighter supply, Micron is gaining momentum in a highly competitive market.
Micron plans to release its full fourth-quarter results later this year.
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