{"id":249930,"date":"2025-09-23T21:32:13","date_gmt":"2025-09-23T21:32:13","guid":{"rendered":"https:\/\/www.europesays.com\/us\/249930\/"},"modified":"2025-09-23T21:32:13","modified_gmt":"2025-09-23T21:32:13","slug":"micron-forecasts-first-quarter-revenue-above-estimates-on-ai-demand","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/249930\/","title":{"rendered":"Micron forecasts first-quarter revenue above estimates on AI demand"},"content":{"rendered":"\n

(Reuters) -Micron Technology forecast first-quarter revenue above market estimates on Tuesday, betting on booming demand for artificial intelligence<\/a> hardware to boost sales of its advanced memory chips as a race to dominate AI tech intensifies.<\/p>\n

Shares of the memory chip maker rose over 2% in extended trading. An optimistic outlook from Micron could help add fuel to Wall Street’s AI-backed rally, which has doubled its share price so far this year.<\/p>\n

Efforts to build the most sophisticated AI models and expand the data center infrastructure that they run on has boosted demand for Micron’s high-bandwidth memory chips, or HBM.<\/p>\n

Much of the competition among the world’s largest memory suppliers \u2014 Micron, SK Hynix and Samsung \u2014 has centered on becoming a key supplier to Nvidia<\/a>, owing to the world’s most valuable company’s dominant market position. Micron supplies HBM for some of Nvidia’s semiconductors.<\/p>\n

Micron forecast first-quarter sales of $12.50 billion, plus or minus $300 million, compared with the analysts’ average estimate of $11.94 billion, according to data compiled by LSEG.<\/p>\n

HBM \u2014 a type of dynamic random access memory or DRAM \u2014 involves stacking chips vertically to reduce power consumption, helping process large volumes of data, making it invaluable in AI development.<\/p>\n

In fiscal fourth quarter, Micron’s HBM revenue grew to nearly $2 billion, implying an annualized run rate of nearly $8 billion, CEO Sanjay Mehrotra said in prepared remarks.<\/p>\n

Micron said it is partnering with TSMC for manufacturing the base logic die for its latest “HBM4E” for both customized products and off-the-shelf iterations.<\/p>\n

Latest developments in HBM technology have progressed to customer-specific constructions, making it difficult to switch between memory providers and upping the stakes for Micron as it tries to elbow SK Hynix out of Nvidia designs.<\/p>\n

Micron also forecast adjusted gross margin of 51.5%, far above estimates of 45.9%.<\/p>\n

“The significantly higher gross margin outlook was the key criteria for investors,” said Kinngai Chan, an analyst at Summit Insights. “Pricing is better than expected.”<\/p>\n

After months of inventory corrections, analysts have pointed to improved pricing across the spectrum of memory chips, from DRAM used in personal electronics to NAND employed in data storage devices.<\/p>\n

The company reported revenue of $11.32 billion for the fourth quarter, beating estimates of $11.22 billion. It recorded adjusted earnings of $3.03 per share in the fourth quarter, beating estimates.<\/p>\n

(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Alan Barona)<\/p>\n","protected":false},"excerpt":{"rendered":"(Reuters) -Micron Technology forecast first-quarter revenue above market estimates on Tuesday, betting on booming demand for artificial intelligence…\n","protected":false},"author":3,"featured_media":249931,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[64,58127,33353,132487,132485,132486,44863,67,132,68],"class_list":{"0":"post-249930","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-estimates","10":"tag-fourth-quarter","11":"tag-hbm","12":"tag-market-estimates","13":"tag-memory-chips","14":"tag-micron-technology","15":"tag-united-states","16":"tag-unitedstates","17":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115255754573623624","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/249930","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=249930"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/249930\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/249931"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=249930"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=249930"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=249930"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}