Micron Technology stock is surging ahead of its Q3 fiscal 2025 earnings report, slated for June 25. The semiconductor giant has already gained 37% in recent months, fueled by booming AI demand.
Micron expects $8.8 billion in revenue for the quarter, up from $6.8 billion last year. Adjusted earnings could more than double. The secret? High-bandwidth memory (HBM) chips needed for AI GPUs from Nvidia and AMD.
Nvidia’s latest Blackwell GPUs, which power its AI data centers, ramp up HBM capacity drastically. The B200 chip packs 192 GB of HBM, and the B300 cranks it to 288 GB. Micron confirmed it started shipping HBM3e memory to a third major customer in March, likely Nvidia’s new lineup. 
HBM supplies are tight, prompting Micron to plan an 11% price increase on these chips this year. The company has sold out its 2025 HBM capacity and is locking in deals for 2026. Broadcom and Marvell Technology are also integrating HBM in their AI accelerator designs, expanding the market.
Micron trades at just 23 times current earnings and nine times forward earnings despite the rally. Analysts project earnings growth of 437% this year and 57% next year. The median price target sits at $130, about 27% above current levels.
Investors looking for an AI play should watch Micron’s report closely. The company could easily beat estimates, pushing the stock higher as AI chips drive relentless demand for its memory tech.
Image source: Getty Images.
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool recommends Broadcom and Marvell Technology. The Motley Fool has a disclosure policy.
