Micron's AI Demand Surge

Micron Technology has revised its Q4 revenue forecast upwards, now anticipating $11.2 billion, a notable increase from the previous $10.7 billion. This adjustment reflects increased demand for memory chips crucial in AI infrastructure. The company's adjusted earnings per share (EPS) are projected to reach $2.85, surpassing earlier estimates of $2.50.

The improved outlook is attributed to better DRAM pricing and strong operational execution. Micron's high-bandwidth memory (HBM) products, essential for AI computing and working alongside processors like those from Nvidia, are driving growth. The company anticipates its HBM market share to align with its overall DRAM market share, around 25%, by the latter half of the year.

Micron is also making strides with its next-generation HBM4, boasting 60% higher performance and 20% less power consumption than its HBM3E chips. Samples have been delivered to customers, with volume production expected to ramp up next year. This positions Micron to capitalise on the expanding AI memory chip market, projected to grow significantly.