Micron (MU) will announce its fiscal 2025 third-quarter earnings on June 25. MU stock has already gained about 46% since the start of the year. Moreover, this momentum in Micron stock could sustain led by higher demand for its memory chips and storage products in both data center and consumer markets. Furthermore, Micron is gaining market share across high-margin product categories, which will help cushion its bottom line.

With AI continuing to drive demand for advanced memory products, Micron is poised to deliver record revenue and improved earnings in Q3, which could further lift its share price.

Analysts, too, remain upbeat about Micron’s prospects heading into this earnings report. With the ongoing momentum in Micron’s business, let’s look at analysts’ Q3 earnings forecast.

Micron: Q3 Expectations

As Micron prepares to release its third-quarter results, expectations remain positive. The semiconductor company’s management is forecasting third-quarter revenue of approximately $8.8 billion, a 30% increase from the same period last year. This growth is expected to be powered by higher shipments of DRAM and NAND memory products, particularly as AI infrastructure demands more high-performance chips.

Last quarter, Micron set a new record for data center DRAM revenue, and its high-bandwidth memory (HBM) sales surged over 50% sequentially, crossing the $1 billion mark in quarterly revenue. This reflects that the company’s strategic ramp-up in HBM is paying off. Micron’s ability to supply low-power DRAM (LP DRAM) at high volumes for data center use gives it a competitive edge in a fast-growing market.

Micron continues to invest in the capacity to capitalize on AI-driven opportunities. The company is expanding its HBM manufacturing capacity to meet anticipated demand through 2026, which will solidify its market positioning.

Thanks to its solid sales, Micron’s bottom line could witness significant growth in Q3. Notably, Micron has a solid track record of consistently outperforming Wall Street expectations, having exceeded earnings forecasts for four consecutive quarters. In its last report, the company beat estimates by 9.3%.

Analysts are expecting adjusted earnings of $1.43 per share for Q3, marking a significant improvement from last year. Micron’s guidance is even more bullish, with management projecting earnings of $1.57 per share, plus or minus $0.10.

Micron Stock: AI-Fueled Growth Sets Stage for Long-Term Gains

Micron is well-positioned to capitalize on soaring demand driven by the growth of generative AI, data center expansion, and high-performance computing. As generative AI becomes more efficient and affordable, thanks to breakthroughs in hardware and software, demand for powerful memory solutions is expected to rise, and Micron, a key supplier of high-bandwidth memory (HBM), stands to benefit substantially.

The company’s HBM products are crucial in powering AI accelerators, which require immense memory bandwidth. With HBM3E already in volume production and its 12-high (12H) variant offering significant advantages in both power efficiency and memory capacity, the company expects HBM to become a multibillion-dollar business by fiscal 2025. Micron has already sold out its HBM output for 2025 and is securing supply agreements for 2026, which indicates solid growth ahead.

The upcoming HBM4, offering significantly higher bandwidth, is expected to ramp up in 2026. As Micron scales HBM production and ramps up new platforms, it is likely to generate solid HBM revenue.

Beyond HBM, Micron continues to lead in low-power DRAM for AI servers and mobile devices. Meanwhile, Micron’s NAND portfolio is gaining share in the data center market, particularly through its high-performance SSDs, which support the growing shift from HDDs to flash storage.

In mobile, the rising adoption of AI is driving demand for higher DRAM capacity in smartphones, while in automotive, memory needs are surging due to AI-driven infotainment and autonomous driving.

Overall, Micron is expected to deliver higher shipments of AI and consumer-oriented products in the coming quarters, which will drive its financial performance and share price.

The Bottom Line on MU Stock

With AI driving solid demand for memory products, Micron is poised to deliver solid growth. Its leadership in high-bandwidth memory and low-power DRAM, along with solid momentum across consumer and automotive markets, positions it well to rapidly expand its revenue and earnings.

Wall Street is optimistic about Micron stock and maintains a “Strong Buy” consensus rating ahead of its Q3 earnings report.