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Micron Beats Estimates and Raises Outlook on Soaring AI Memory Demand

The company said tight supply of high‑performance DRAM and HBM and strong AI data‑center orders have pushed revenue higher and sent shares sharply up.

Overview

  • Micron, which reported on Thursday, delivered a Q3 revenue beat of about $41.5 billion and adjusted earnings of $25.11 per share, well above analyst forecasts.
  • The company gave an aggressive Q4 guide of roughly $49–51 billion in revenue and $30–32 in EPS and announced a $0.15 quarterly dividend.
  • Micron disclosed a strategic supply agreement with AI firm Anthropic and said it took part in Anthropic’s Series H financing, positioning Micron as a preferred storage supplier.
  • Markets reacted immediately with the stock jumping about 18–20 percent in pre‑ and after‑hours trading, analysts at Citigroup and JPMorgan raised targets and Asian chip stocks rallied.
  • Executives said constrained memory supply and high DRAM/HBM demand should support prices beyond 2027, but analysts warned of heightened volatility, options markets imply large intraday swings, and circular supplier‑investor ties could amplify downside if AI demand cools.