Record Revenue Thanks to Artificial Intelligence
Micron Technology looks optimistically towards the future as the ongoing boom in Artificial Intelligence (AI) significantly boosts the demand for high-performance memory chips. In the third quarter of fiscal 2025, the US chip manufacturer achieved record revenue of $9.3 billion and expects further revenue growth of about 15 percent to around $10.7 billion in the fourth quarter.
Focus on Data Centers and AI Applications
Micron particularly benefits from its focus on data centers and AI applications. With its advanced 1-Gamma DRAM technology, the company sets new technological standards. This technology offers a 30% higher bit density, over 20% lower power consumption, and up to 15% better performance compared to previous generations.
Long-Term Investments
In the long term, Micron plans investments of around $200 billion over more than two decades. Of this amount, about $150 billion will flow into manufacturing capacities and $50 billion into research & development. Planned investments include a new modern memory factory in Boise (Idaho) and expansions in Manassas (Virginia).
CEO’s Confidence
CEO Sanjay Mehrotra expresses confidence and sees the company on track for record revenue and strong free cash flow for the full year 2025. Margins are expected to increase, with a projected non-GAAP gross margin of around 42% and a diluted earnings per share of approximately $2.50 for the upcoming quarter.
International Interest and Competition
European investors should closely monitor Micron’s growth potential as the AI boom is also recognized in international markets. After a challenging cycle, Micron has recovered and appears fairly valued. However, the market remains cyclical, and with Samsung’s intensified commitment to AI storage solutions, competition may intensify.
In summary, Micron Technology is currently benefiting greatly from the global trend towards Artificial Intelligence and impresses with increasing revenues, profits, and investments in forward-looking technologies.