Micron’s $11.2B AI Chip Forecast Boosts Shares 3%

- Micron raises Q4 forecast to $11.2B as AI chips soar. - Shares jump 3%, driven by record pricing power. On August 11, 2025, Micron Technology raised its fourth-quarter revenue and profit forecasts to $11.2 billion, citing surging demand for AI chips that boosted its shares 3% in early trading. According to a Reuters report on August 11, the projection is an upgrade from the company's initial estimate of $10.7 billion. This increase was driven by strong performance in memory chips, which are essential for artificial intelligence infrastructure. In addition, Micron revised its adjusted gross margins to 44.5% from 42% and now projects earnings per share at $2.85, up from the previous $2.50. The increased forecast highlights the pivotal role of advanced memory solutions like Dynamic Random Access Memory (DRAM) and High-Bandwidth Memory (HBM) chips in next-generation AI data centers. DRAM, which manages intensive AI workloads, has benefited from stronger pricing due to tightening supply. Meanwhile, constrained manufacturing output drives unprecedented demand for HBM chips, which are crucial for applications like autonomous systems and large language models. Micron's revised outlook comes amid the booming AI sector, where specialized chips underpin data-intensive operations. The company's pricing power in an increasingly constrained supply market positions it well to capitalize on this growth. Rival SK Hynix similarly predicts a 30% compound annual growth rate in the AI memory chip market by 2030, a prediction that underscores the sector's long-term momentum. Potential 100% U.S. tariffs on certain imported chips represent a challenge for the industry; however, domestic manufacturers like Micron are better positioned to avoid such impacts. To strengthen its foothold, the company announced a $30 billion expansion in U.S. investments, raising its total planned domestic spending to $200 billion. This strategic move mitigates tariff risks while fostering a robust domestic supply chain to support Micron's future growth.