Micron Technology has electrified markets with a significant upward revision of its fourth-quarter forecast, now projecting adjusted earnings of $2.85 per share (±7 cents), up from $2.50, and revenue estimates surging to $11.2 billion from $10.7 billion. The bullish outlook, exceeding analyst expectations, sent shares soaring over 5% in pre-market trading to nearly $125. The surge is fueled by skyrocketing demand for high-bandwidth memory (HBM) chips, critical for AI data centers, as tech giants ramp up infrastructure investments. DRAM prices are climbing sharply, bolstering Micron’s margins amid constrained production capacity.
30% Annual Growth Forecast for AI Memory Market
Industry experts predict a golden era for memory chips, with the HBM market poised to grow 30% annually through 2030, potentially reaching tens of billions. Competitors and partners alike are racing to develop next-generation HBM4 chips, integrating custom logic for enhanced performance. Micron’s strategic positioning in this high-growth sector, coupled with robust execution, solidifies its role as a key player in the AI-driven memory revolution. Investors now weigh whether this marks the start of a sustained rally or a cyclical peak.
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