Micron poised for a strong finish to FY25 on AI-driven demand growth

Micron Technology Inc. (NASDAQ: MU) is capitalizing on the surging demand for high-performance computing and data center products through its leadership in AI-optimized memory solutions, including High Bandwidth Memory and advanced DRAM technologies. Investors are tracking the company’s upcoming earnings as it is expected to provide insights into evolving dynamics in the memory chip market.

After gaining steadily over the past several months, Micron’s stock opened the week near its highest levels on record, outpacing both industry peers and the broader market. The value has more than doubled in the past four months, making MU one of the best-performing Wall Street stocks this year. Despite the relatively high valuation, the stock presents a compelling investment opportunity, given the continued strong demand for the company’s products designed for AI workloads.

Estimates

The Boise, Idaho-headquartered memory chipmaker’s fourth-quarter 2025 earnings report is slated for release on Tuesday, September 23, at 4:00 pm ET. The Micron leadership in a recent statement said it expects Q4 revenues to be approximately $10.7 billion. It anticipates adjusted earnings to be about $2.50 per share and unadjusted earnings $2.29 per share in the fourth quarter.

The forecast is below analysts’ revenue estimate of $11.11 billion and EPS estimate of $2.86 per share for Q4. In the comparable quarter of fiscal 2024, the company reported earnings of $1.18 per share, adjusted for one-off items, on revenues of $7.75 billion.  Interestingly, both the top line and earnings have consistently beaten the market’s expectations in the past nine quarters.

In the third quarter of FY25, Micron’s adjusted earnings rose sharply to $1.91 per share from $0.62 per share in the year-ago period, exceeding Wall Street’s estimates. On an unadjusted basis, net income was $1.89 billion or $1.68 per share in Q3, compared to $332 million or $0.30 per share in the prior-year quarter.

Record Revenue

Driving the bottom-line growth, third-quarter revenues climbed to a record high of $9.30 billion from $6.81 billion in the corresponding period of 2024. Revenues came in above expectations. Data center revenue more than doubled year-over-year and reached a quarterly record, with high-bandwidth memory, a critical enabler for all AI systems, growing about 50% sequentially. The company expects the healthy demand trend to continue in FY26. It sees industry DRAM bit demand growth to be in the high-teens percentage range in the calendar year, and industry NAND bit demand growth in the low double-digit percentage range.

From Micron’s Q3 2025 Earnings Call:

Our first Idaho fab, ID1, achieved another key construction milestone in June. We expect the first DRAM wafer output at ID1 to begin in the second half of calendar 2027, with customer qualifications to follow. The second Idaho fab, ID2, will benefit from manufacturing economies of scale with ID1, and add to R&D co-location benefits with greater efficiencies and faster time to market. To meet anticipated demand, ID2 will begin production before the first New York fab. We expect to begin ground preparation in New York later this year, following the completion of state and federal environmental reviews.

Micron’s shares have grown an impressive 30% in the past month alone. On Monday, the stock opened at $156.96 and traded higher in the early hours of the session, hovering near its recent peak.