Micron Stock Jumps After Boosting Sales And Profit Outlook On Soaring AI Chip Demand

Micron Technology MU stock gained on Monday after the company lifted its fourth-quarter fiscal 2025 guidance, citing stronger-than-expected pricing, particularly in DRAM, and solid operational execution.

The company expects a quarterly revenue of $11.1 billion-$11.3 billion (up from prior $10.4 billion-$11 billion) versus an analyst consensus estimate of $10.73 billion.

It now expects quarterly adjusted EPS of $2.78-$2.92 (up from prior $2.35-$2.65) versus an analyst consensus estimate of $2.44.

Also Read: Micron Launches First Space-Ready Memory Chip To Power AI Missions In Orbit

The revision signifies continued AI frenzy as the U.S. big tech giants keep splurging on their AI ambitions.

Meta Platforms META, Microsoft MSFT, and Alphabet GOOGL Google are set to pour more than $250 billion into AI infrastructure between 2025 and 2026, with Meta guiding for nearly $100 billion in 2026 capex, Google boosting its 2025 outlook to $85 billion, and Microsoft’s spending trending above $100 billion annually.

Wedbush’s Dan Ives called it a “watershed moment” with years of explosive AI growth ahead. At the same time, JPMorgan sees under-the-radar hardware and infrastructure players as primary beneficiaries of this investment surge.

Last week, Apple AAPL announced an additional $100 billion U.S. investment.

Micron stock gained over 47% year-to-date, topping the NASDAQ Composite Index’s over 11% returns. This was driven by strong demand for its memory chips, particularly High-Bandwidth Memory (HBM) and specifically HBM3E.

HBM3E powers AI accelerators like Graphics Processing Units (GPUs) and Application-Specific Integrated Circuits (ASICs). Micron supplies HBM3E for Nvidia’s NVDA Blackwell and Rubin GPU lines and to other customers for use in GPUs and ASICs.

Price Action: MU stock is trading higher by 4.29% to $124.00 at last check on Monday.

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