Micron raises Q4 forecast to $11.2B on surging AI memory chip demand

Micron Technology raised its fourth-quarter revenue forecast to $11.2 billion and adjusted earnings per share to $2.85, surpassing previous estimates due to surging demand for AI memory chips. The semiconductor company’s shares jumped 5% in premarket trading as investors responded to the stronger-than-expected guidance driven by increased orders from tech firms scaling their AI data center investments.

What you should know: Micron significantly boosted its financial outlook for the quarter ending in August, reflecting the company’s position in the AI infrastructure boom.

• Revenue forecast increased from $10.7 billion (plus or minus $300 million) to $11.2 billion (plus or minus $100 million).
• Adjusted earnings per share guidance rose from $2.50 (plus or minus 15 cents) to $2.85 (plus or minus 7 cents).
• The updated forecasts represent substantial improvements with tighter margin ranges, indicating greater confidence in demand visibility.

Why this matters: The forecast revision underscores how AI infrastructure buildouts are creating substantial revenue opportunities for memory chip manufacturers, with Micron capitalizing on the intensive data-processing requirements of modern AI systems.

The big picture: Semiconductor companies like Micron are experiencing unprecedented demand for high-bandwidth memory chips as large technology firms dramatically increase their financial commitments to AI data centers.

• Memory chips have become critical components for AI infrastructure due to their ability to handle intensive data-processing workloads.
• The surge in orders reflects the broader industry shift toward AI-powered services and applications.
• Micron’s performance serves as a bellwether for the semiconductor sector’s AI-driven growth trajectory.

Market response: Investors reacted positively to the guidance increase, with Micron shares rising 5% in premarket trading following the announcement.