Micron Technology (NASDAQ:MU) saw its shares gain slightly in premarket U.S. trading Thursday after reporting robust third-quarter fiscal results and issuing positive guidance for the current quarter, driven by sustained demand for memory chips used in artificial intelligence applications.
The company revealed a nearly 50% increase in sales of its high-bandwidth memory (HBM) chips compared to the previous quarter. These chips play a critical role in AI data centers, supporting the complex processing needs of emerging AI technologies.
Micron emphasized ongoing investments in chip enhancements, a strategy aligned with heavy spending by cloud providers such as Alphabet (NASDAQ: GOOGL) and others focused on expanding their AI infrastructure. The company expects its market share in HBM chips to rival its position in dynamic random-access memory (DRAM) chips during the second half of 2025.
Sumit Sadana, Micron’s Chief Business Officer, noted that recent broad U.S. tariffs have only minimally affected customer purchasing patterns. Addressing concerns over potential cutbacks from cautious buyers amid economic uncertainties, Sadana told Reuters, “It’s not something we lose sleep over.”
For the quarter, Micron reported adjusted earnings per share of $1.91 on revenue of $9.3 billion, surpassing analyst expectations of $1.59 EPS and $8.84 billion in revenue, according to Investing.com data.
Looking ahead, the company projects fourth-quarter revenue of approximately $10.7 billion, with a margin of plus or minus $300 million. This forecast exceeds consensus analyst estimates of $9.88 billion, per data from LSEG cited by Reuters.
In a client note raising their price target on Micron shares, Stifel analysts highlighted expectations for stronger pricing trends extending into September and anticipated that favorable product mix dynamics would continue to boost performance through the end of the year.