‘Micron Technology' Raises Forecast for Fourth-Quarter Revenue, Profit
Semiconductor makers such as Micron have seen a surge in orders for their high-bandwidth memory (HBM) chips due to their intensive data-processing capabilities, as large tech firms ramp up AI data center investments, according to Reuters.
The company now expects quarterly revenue of $11.2 billion, plus or minus $100 million, compared with its previous forecast of $10.7 billion, plus or minus $300 million.
Micron also nudged up its adjusted gross margin forecast to 44.5%, plus or minus 0.5%, for the fourth quarter, compared with its prior expectation of 42%, plus or minus 1%.
The company said the revised forecast reflects improved pricing, particularly for dynamic random access memory or DRAM products.
Supply constraints in HBM production and strong AI demand have enabled Micron to command higher prices for its products, representing a shift where historically memory chipmakers had to accept thinner margins, eMarketer analyst Jacob Bourne said.
Reuters exclusively reported on Monday Nvidia supplier SK Hynix sees the market for specialized AI memory chips growing 30% a year until 2030.
The imposition of a 100% tariff on some chips imported into the US could hit growth, but the duties will not apply to companies manufacturing in the country or have committed to do so.
In June, Micron said it is expanding its US investments by $30 billion, totaling $200 billion.
Micron expects adjusted fourth-quarter earnings of $2.85 per share, plus or minus 7 cents, compared with its earlier expectation of $2.50, plus or minus 15 cents.
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