Micron Technology has announced an increase in its fourth-quarter revenue and profit forecast as demand for artificial intelligence memory chips rises.
Micron's Revenue Prospects
The company anticipates quarterly revenue of $11.2 billion, significantly above its previous outlook of $10.7 billion. Micron also raised its adjusted gross margin forecast to 44.5%, up from 42%.
Price Increases and Demand
The increased forecast is driven by higher prices for memory products, especially dynamic random access memory (DRAM). HBM chips are becoming increasingly essential for AI, providing critical data transfer speeds needed for processing large volumes of information.
Micron's Future in Growing AI Demand
Micron is benefiting not only from AI demand but also from its early investments in HBM development. The specialized AI chip market is expected to grow by 30% annually through 2030, although challenges such as planned tariffs on imported chips remain.
Micron Technology's latest forecast highlights strong market trends in AI, suggesting the company may end the year with better-than-expected performance.
