Micron lifts revenue forecast as AI memory demand outpaces supply

Micron Technology raised the bar for the chip boom on June 24, forecasting fiscal fourth-quarter revenue of $50 billion, plus or minus $1 billion, and sending its shares up more than 9% in extended trading. The outlook landed far above the LSEG consensus estimate of $43.58 billion. Demand tied to artificial intelligence infrastructure was still running hotter than supply.

The Boise, Idaho-based chipmaker also reported fiscal third-quarter revenue of $41.46 billion, up from $23.86 billion in the prior quarter and $9.30 billion a year earlier. Non-GAAP diluted earnings came to $25.11 a share, while GAAP net income reached $28.24 billion and operating cash flow totaled $25.39 billion. Micron ended the quarter with $30.2 billion in cash, marketable investments and restricted cash.

High-bandwidth memory, or HBM, has become a critical component for the large-scale data centers and processors behind AI systems. Micron warned that tight conditions could stretch beyond calendar 2027. CEO Sanjay Mehrotra told investors that the company expected “tight conditions to persist beyond calendar 2027,” as AI demand broadened while supply remained structurally constrained. Micron is the only U.S.-based manufacturer of high-end memory chips, a position that has made its output a key measure of how much AI spending is reaching the hardware layer.

Buyers have committed $22 billion to lock in future memory-chip availability. The company also said fiscal fourth-quarter capital spending would run about $10 billion, even as it continued returning capital to shareholders. In March, Micron’s board approved a 30% increase in the quarterly dividend, and Mehrotra described memory as a “strategic asset” in the AI era.

On May 26, the company briefly topped a $1 trillion market value after a share surge that lifted its stock about 700% over the prior year. In June, Micron said it had signed a supply agreement with Anthropic covering memory and storage products, along with a strategic investment in Anthropic’s latest funding round.

Micron’s cloud memory business unit generated $13.769 billion in fiscal third-quarter revenue, while core data center revenue reached $11.524 billion. The strongest demand is still clustered in the most advanced parts of the chip market, where AI builders are competing for capacity that remains scarce.