rewrite this title After delivering record Q3 results, Micron (MU) expects AI-driven growth to continue | AlphaStreet

Micron Technology Inc. (NASDAQ: MU) has reported strong third-quarter results that beat estimates, and issued positive guidance. Data center revenue more than doubled amid continued strong growth in the demand for high-bandwidth memory chips, which has become a key growth driver for the company.

The Idaho-headquartered memory chipmaker’s stock rose soon after the announcement this week but pulled back soon and pared most of those gains. After retreating from its peak a year ago, the stock entered a period of steady decline. However, it reversed course a few weeks ago and has sustained the upward momentum since.

Results Beat 

The semiconductor firm reported adjusted earnings of $1.91 per share for the third quarter, compared to $0.62 per share in the year-ago period. Earnings beat estimates. On an unadjusted basis, net income was $1.89 billion or $1.68 per share in Q3, compared to $332 million or $0.30 per share in the prior-year quarter.

Third-quarter revenues rose sharply to $9.30 billion from $6.81 billion in the corresponding period of 2024, exceeding Wall Street’s expectations. There was strong sequential growth in consumer-oriented markets. The company’s board declared a quarterly dividend of $0.115 per share, payable on July 22, 2025, to shareholders of record on July 7, 2025. Cash flows remain healthy, giving the company the flexibility to continue investing in long-term growth initiatives.

AI Push

Recently, Micron completed a strategic reorganization of its business segments to position itself to tap into the significant AI growth opportunity. It will be investing around $200 billion in the US for R&D and manufacturing facilities over the next two decades, with support from the Trump administration.

“Our leadership in technology, highlighted by progress in HBM, one Gamma DRAM, and G9 NAND, alongside disciplined global manufacturing investments, supports our path to sustained growth. We are confident that our strategic direction, innovation capabilities, and execution by our exceptional team will continue to create meaningful value for our shareholders, customers, and employees. We are on track to deliver record revenue with solid profitability and free cash flow in FY25…,” Micron’s CEO Sanjay Mehrotra said in the Q3 earnings call.

Outlook

The management expects the current momentum to continue in the coming quarters, aided by the strong demand for AI-driven memory chips. It expects fourth-quarter revenues to grow to a record high of $10.7 billion, which is above analysts’ consensus estimates and represents a 15% sequential growth. The guidance for Q4 adjusted earnings and unadjusted earnings is about $2.50 per share and $2.29 per share, respectively.

Micron shares were trading down 1.5% on Thursday afternoon, extending the weakness experienced after the post-earnings rally. The stock has gained around 50% since the beginning of 2025.