Micron Raises Revenue Forecast, Sees Strong Demand for High-Bandwidth Memory

Micron Technology has raised its revenue forecast, driven by strong demand for high-bandwidth memory. The company's improved supply-demand balance is a key factor, according to Bloomberg's Jake Silverman. Micron's earnings outlook has also been boosted, providing a positive update for investors.

Micron Technology (NASDAQ: MU) has significantly boosted its revenue and earnings outlook for the fourth quarter, driven by robust demand for high-bandwidth memory (HBM) chips. The company's improved supply-demand balance and strong execution have contributed to this positive update, which has been well-received by investors.

Micron Technology recently revised its fourth-quarter revenue forecast to $11.2 billion, up from its previous estimate of $10.7 billion [2]. Additionally, the company expects adjusted earnings per share (EPS) of $2.85, compared to the earlier projection of $2.50 [2]. These upward revisions have led to a 5% increase in Micron's stock price in pre-market trading [2].

The primary driver behind Micron's improved outlook is the increasing demand for high-bandwidth memory chips, which are crucial components in AI infrastructure. These chips are sought after for their intensive data-processing capabilities, a necessity in the rapidly expanding field of artificial intelligence [2]. The tech industry's growing commitment to AI has resulted in a substantial increase in demand for Micron's memory chips [2].

Micron's growth is being fueled by high-bandwidth memory, or HBM—bundles of dynamic random access memory chips closely connected to processors from Nvidia Corp.—which is vital to AI computing. This has helped drive up prices as supply remains constrained due to the complexity of producing and deploying such components [3]. The company's updated sales guidance points to growing momentum behind DRAM, with high-bandwidth memory contributing meaningfully to a healthier supply-demand balance on strong Nvidia Blackwell demand and Blackwell Ultra procurement [3].

JP Morgan analyst Harlan Sur maintained Micron Technology with an Overweight rating and raised the price forecast from $165 to $185, attributing the upside to sustained DRAM strength, improved DDR5 and LPDDR5 contract pricing, and robust HBM demand [1]. Sur expects DRAM pricing strength to continue through 2025 and into 2026, supported by substantial AI capex and constrained leading-edge supply from the HBM4 ramp [1]. Micron's Chief Business Officer Sumit Sadana is expected to share more details during the 2025 Keybanc Technology Conference [3].

Micron's updated sales guidance points to growing momentum behind DRAM, with high-bandwidth memory contributing meaningfully to a healthier supply-demand balance on strong Nvidia Blackwell demand and Blackwell Ultra procurement [3]. This could offset concerns related to tariffs and near-term pricing pressure on HBM [3].

References:
[1] https://finance.yahoo.com/news/micron-rides-ai-wave-upgraded-164744845.html
[2] https://theoutpost.ai/news-story/micron-technology-raises-q4-forecast-amid-surging-ai-driven-demand-for-memory-chips-18932/
[3] https://www.bloomberg.com/news/articles/2025-08-11/micron-raises-its-revenue-earnings-outlook-on-improved-prices
[4] https://www.marketscreener.com/news/micron-jumps-after-raising-revenue-forecast-ce7c5ed2d180fe23