Confident forecast and record revenue suggest further upside potential for Micron shares

Micron Technology’s strong Q3 2025 results, a confident outlook for the next quarter, and persistently high demand for memory products highlight the potential for further upside in MU shares.

Micron Technology, Inc. (NASDAQ: MU) reported strong results for Q3 of the 2025 financial year, with revenue rising to 9.3 billion USD, driven by sustained demand for HBM and AI-related data centre memory. Management highlighted significant progress in ramping up production of HBM3E and the launch of testing for HBM4, reinforcing Micron’s position as a key infrastructure supplier in the AI segment. However, the company is also facing capacity constraints, particularly in the HBM segment, where demand significantly exceeds supply. This imbalance is expected to persist through to the end of the 2025 calendar year.

Despite Micron’s strong performance and upbeat guidance, investor reaction was muted. On the first trading day following the earnings release, shares fell by around 1%. Although the company posted record revenue, expanded margins, and earnings that exceeded expectations, some investors appeared to believe these factors had already been priced in, given the stock’s 11% rise over the past 3.5 months. In addition, references to ongoing supply constraints, particularly in the HBM segment, raised doubts over Micron’s ability to fully capitalise on the short-term surge in AI-related demand. It is also possible that some investors chose to lock in profits following the recent sharp rally. Overall, the company continues to demonstrate robust fundamentals with scope for further improvement, although following the recent strong share price performance, a short-term correction may be required before further gains can be sustained.

This article examines Micron Technology, Inc., outlines its key revenue streams, reviews its performance in Q2 and Q3 of the 2025 financial year, and presents expectations for Q4 fiscal 2025. Additionally, it provides a technical analysis of MU stock, which forms the basis for the Micron stock forecast for the 2025 calendar year.

About Micron Technology, Inc.

Founded in 1978, Micron Technology Inc. is a US-based company that develops and manufactures memory chips (DRAM, NAND) and provides technology solutions for data storage. Micron is one of the world’s largest producers of electronic memory, with its products used in cars, computers, mobile devices, servers, and other electronic equipment. The company was listed on the New York Stock Exchange in 1984 and trades under the ticker MU.

Today, Micron continues to develop and deploy advanced memory modules and data storage technologies for the artificial intelligence, 5G networks, autonomous vehicle, and cloud computing markets.

Micron Technology, Inc.’s main revenue streams

Micron’s business model centres on developing, producing, and selling semiconductor memory modules and data storage solutions. The company’s segments are categorised by the product markets listed below:

• Personal computers and devices: this includes revenue from the sale of memory used in PCs, laptops, and workstations
• Mobile devices: memory chips for smartphones and tablets, where Micron competes against companies producing comparable products for high-performance devices
• Storage devices: products and solutions for NAND flash memory-based data storage
• Embedded systems: memory components and modules for integration into systems used in the automotive and healthcare sectors, as well as the manufacturing industry

The company provides detailed data for each segment and aggregates them into two major sectors in its report. The first sector is DRAM (Dynamic Random-Access Memory), which accounts for a substantial share of the company’s revenues (about 70%). DRAM is used in personal computers, servers, smartphones, graphics cards and other devices. The second sector, NAND (flash memory), accounts for about 25-30% of revenues. NAND products are used in SSDs (solid-state drives), mobile devices, data storage systems and other products requiring rapid and reliable access to information.

Micron Technology Inc. Q4 FY 2024 report

On 25 September 2024, Micron released its Q4 2024 report, which covered the period ending on 25 August. The company’s financial performance surprised investors and exceeded forecasts. Below is the reported data:

• Revenue: 7.75 billion USD (+93%)
• Net income: 1.34 billion USD compared to a loss of 1.17 billion USD
• Earnings per share: 1.18 USD compared to a loss of 1.07 USD
• Operating profit: 1.74 billion USD compared to a loss of 1.20 billion USD

Revenue by segment:

• DRAM: 5.33 billion USD (+69%)
• NAND: 2.36 billion USD (+31%)
• Compute and Networking: 3.01 billion USD (+152%)
• Mobile: 1.87 billion USD (+55%)
• Storage: 1.68 billion USD (+127%)
• Embedded: 1.17 billion USD (+36%)

After announcing the Q4 2024 financial results, Micron’s management underscored an impressive 93% revenue growth from the previous year, driven by strong demand for DRAM products for data centres and record NAND sales, which exceeded 1 billion USD per quarter for the first time.

Micron’s CEO, Sanjay Mehrotra, noted that Micron has the best competitive positioning in its entire history and forecasted record revenue and profitability figures in Q1 2025. He also emphasised the importance of demand for artificial intelligence solutions, which helps strengthen the company’s position in the market.

Micron expects record revenue in Q1 2025, forecasting income of 8.70 billion USD (plus or minus 200 million USD) and a gross margin of 39.5%. The anticipated earnings per share will amount to 1.74 USD. These figures are considerably higher than in previous quarters, indicating growth in demand for the company’s products, particularly in the artificial intelligence and cloud computing segments.

Micron also noted that it continues to benefit from rising prices in memory and data storage markets related to increased demand for AI servers.

Micron Technology Inc. Q1 FY 2025 report

On 18 December 2024, Micron published its Q1 fiscal 2025 report, covering the period ending on 28 November. Below are the report highlights:

• Revenue: 8.70 billion USD (+84%)
• Net income: 2.04 billion USD versus a loss of 1.05 billion USD
• Earnings per share: 1.79 USD versus a loss of 0.95 USD
• Operating profit: 2.39 billion USD versus a loss of 0.95 billion USD

Revenue by segment:

• DRAM: 6.40 billion USD (+73%)
• NAND: 2.32 billion USD (+26%)
• Compute and Networking: 4.40 billion USD (+153%)
• Mobile: 1.50 billion USD (+16%)
• Storage: 1.70 billion USD (+160%)
• Embedded: 1.10 billion USD (+6%)

Sanjay Mehrotra noted that data centres accounted for over 50% of revenue for the first time in the company’s history, driven by strong demand for AI memory chips. He also acknowledged the weakness in consumer segments such as PCs and smartphones but expressed confidence that growth would resume in the second half of the fiscal year.

For Q2 fiscal 2025, Micron issued guidance below Wall Street expectations, forecasting revenue of 7.90 billion USD (± 200 million USD) and EPS of 1.43 USD (± 0.10 USD). This forecast reflects the anticipated decline in DRAM and NAND revenue due to oversupply and sluggish consumer demand.

Investors reacted negatively to the outlook, with Micron’s stock falling by over 13% after the report was published.

Micron Technology Inc. Q2 FY 2025 report

On 20 March 2025, Micron released its Q2 fiscal 2025 report, covering the period ending on 27 February. Below are the report highlights:

• Revenue: 8.05 billion USD (+38%)
• Net income: 1.78 billion USD (+273%)
• Earnings per share: 1.56 USD (+323%)
• Operating profit: 2.01 (+800%)

Revenue by segment:

• DRAM: 6.12 billion USD (+47%)
• NAND: 1.85 billion USD (+18%)
• Compute and Networking: 4.60 billion USD (+153%)
• Mobile: 1.10 billion USD (+16%)
• Storage: 1.40 billion USD (+160%)
• Embedded: 1.00 billion USD (+6%)

Sanjay Mehrotra noted that revenue from DRAM for data centres reached a new record, while income from high-bandwidth memory (HBM) chips rose by more than 50% from the previous quarter, exceeding 1 billion USD. He emphasised Micron’s strong competitive position and the company’s success in high-margin product categories, attributing this to an effective strategy and growing demand for memory solutions used in artificial intelligence applications.

For Q3 fiscal 2025, Micron forecast revenue of between 8.6 and 9.0 billion USD with expected EPS of between 1.47 and 1.67 USD. The company also projected a decline in gross margin to 36.5%, a 1.5 percentage point decrease from the previous quarter. This decrease was attributed to a rise in sales of lower-margin consumer products and ongoing oversupply in the NAND market, which continues to put downward pressure on prices.

Investor reaction was mixed. Following the release of the earnings report, Micron’s shares initially rose by more than 5% in after-hours trading, reflecting optimism over the strong results. However, concerns regarding the level of gross profit and rising inventory levels later led to a drop of more than 8%, making Micron one of the worst-performing stocks in the S&P 500 following the earnings release.

Micron Technology, Inc. Q3 2025 financial report

• Revenue: 9.30 billion USD (+37%)
• Net income: 2.18 billion USD (+210%)
• Earnings per share: 1.91 USD (+208%)
• Operating profit: 2.49 billion (+164%)

Revenue by segment:

• DRAM: 7.07 billion USD (+50%)
• NAND: 2.15 billion USD (+4%)
• Compute and Networking: 5.06 billion USD (+97%)
• Mobile: 1.55 billion USD (-2%)
• Storage: 1.45 billion USD (+7%)
• Embedded: 1.22 billion USD (-5%)

Micron reported strong results for Q3 FY2025, significantly outperforming market expectations. Revenue reached 9.3 billion USD, up 37% year-on-year, while adjusted earnings per share rose to 1.91 USD, compared to a consensus forecast of 1.60 USD. The primary driver was sustained growth in demand for memory used in AI systems. HBM shipments rose by approximately 50% quarter-on-quarter, and revenue from data centres more than doubled.

During the earnings call, CEO Sanjay Mehrotra highlighted the accelerated deployment of advanced technologies. Production of 1-gamma DRAM using EUV lithography began ahead of schedule, and the transition to mass shipments of HBM3E is expected as early as Q4. The company also announced the start of HBM4 testing, with plans to enter volume production in 2026. These initiatives, along with expanding manufacturing capacity in the US and support via the CHIPS Act, represent a strategic advantage for Micron in the AI memory segment.

Profitability also improved, with gross margin reaching 39%, exceeding the upper end of guidance. A further increase to 42% ±1% is expected in Q4. The company plans to allocate approximately 1.2 billion USD to operating expenses next quarter, with a continued focus on R&D in HBM and next-generation memory technologies.

The Q4 outlook reflects management’s optimism. Expected revenue stands at 10.7 billion USD (+38% year-on-year), and earnings per share are projected at 2.50 USD (+111% year-on-year), well above analysts’ consensus estimates.

Micron is demonstrating successful execution of its growth strategy amid structurally increasing demand for memory in AI applications. Its strong position in the HBM market, investments in innovative technologies, and expansion of US-based production are reinforcing its status as a key infrastructure provider for AI. However, the cyclical nature of the industry should be considered – any potential decline in demand across server and consumer segments could put pressure on pricing. Nevertheless, the current Q4 forecast reflects management’s confidence in the continuation of positive momentum.

Expert forecasts for Micron Technology, Inc

• Barchart: 22 out of 30 analysts rated Micron Technology stock as Strong Buy, four as Moderate Buy, three as Hold, and one as Strong Sell. The highest target price for a price increase is 172 USD, while the lowest price for a sell recommendation is 75 USD
• MarketBeat: 20 out of 24 experts have assigned a Buy rating, three recommended Hold, and one Sell. The highest target price for a price increase is 200 USD, while a sell target is as low as 67 USD
• TipRanks: 17 out of 19 surveyed analysts rate the shares as a Buy and two as a Hold. The highest target price is 172 USD, and the lowest for a sell recommendation is 98 USD
• Stock Analysis: nine out of 26 experts assign a Strong Buy rating, 14 a Buy rating, and three a Hold rating. The highest target price for an increase is 250 USD, and the lowest sell target is 84 USD

Micron Technology, Inc. stock price forecast for 2025

In April, following the announcement of Micron Technology’s (NASDAQ: MU) commencement of mass production of HBM3E chips for NVIDIA (NASDAQ: NVDA), MU shares surged higher. From April to July 2025, the stock price increased by 110%, breaking through resistance at 114 USD. The next significant resistance level is the all-time high, around 156 USD. Based on the current performance of Micron shares, the possible scenarios for their price movement in 2025 are as follows:

The main forecast for Micron shares anticipates a test of support at 114 USD, followed by a rebound and a price rise towards the resistance line at 170 USD. This forecast is supported by strong demand for Micron’s products, an optimistic outlook for Q4 FY2025, and cooperation with NVIDIA, which should enable the company to increase its market share in high-speed memory.

The alternative forecast for Micron stock suggests a deeper correction before growth resumes. Under this scenario, a test of support at 104 USD is expected, followed by a rebound and a move towards the resistance line around 170 USD.

Risks of investing in Micron Technology, Inc. stock

Investing in Micron Technology’s stock involves several risks that may adversely impact the company’s income and revenue:

• Memory market cyclicality: the semiconductor industry, particularly the memory segment, is highly cyclical, with fluctuations in demand and prices. A prolonged downturn in segments like NAND and DRAM could lead to overstock, falling prices, and reduced profitability
• Intense competition in the industry: Micron faces fierce competition from major players like Samsung Electronics and SK Hynix. Constant investment in technology and innovation is vital in such a highly competitive environment. If the company fails to keep pace with industry developments, it may lose market share, leading to lower profitability
• Geopolitical tensions and trade restrictions: Micron operates in the global market and generates significant revenue outside the US. Geopolitical tensions, trade disputes, and cybersecurity compliance checks may restrain sales and operations. For example, Micron’s products have been scrutinised in China, highlighting the risks tied to international markets

Investors must carefully consider these risks when evaluating investment in Micron Technology, as they could significantly impact the company’s financial performance and stock price.