Micron sees stock surge amid high demand for memory products

In Beijing, China, on July 18, 2025, Micron Technology's stock experienced significant growth, increasing approximately 6% in the last month and nearly 40% year-to-date. The company recently updated its Q4 FY 2025 revenue forecast, raising expectations to $11.2 billion from a prior estimate of $10.7 billion. Along with revenue expectations, adjusted earnings are projected at $2.85, an increase from $2.50. The surge in stock value is primarily attributed to heightened demand for high-bandwidth memory products driven by the growing needs of artificial intelligence infrastructure. Micron's anticipated revenue for the current fiscal year is expected to rise by 47%, with projections suggesting growth will continue at around 30% for FY 2026. This momentum places Micron in a potentially advantageous position within the market, particularly as it remains the sole volume producer of low-power DRAM for data centers. Recent performance in the data center sector saw revenue more than double year-over-year last quarter, underscoring the importance of these sectors as AI workloads grow in complexity and demand. The ongoing transformation of AI—from text-only models to more complex, multimodal formats involving video and speech—is pushing memory intensity to greater heights. This shift means that while standard DRAM provides necessary capacity, the coming demands will heavily lean on high-bandwidth memory, which offers the bandwidth and low latency essential for advanced machine learning tasks. This increasing memory demand also coupled with Micron's limited output of standard DRAM, and the firm's focus on HBM capacity is expected to maintain overall pricing and margins for Micron’s products. Investors are keenly watching Micron's valuation metrics as the company currently trades at below 10x FY 2026 earnings. The stock is perceived to be undervalued, especially given the forecasted growth and constantly increasing demand for memory solutions essential in a tech-driven world. Industry observers remain uncertain if Micron's current cycle will transition from being cyclical to a more stable, secular growth play, largely hinging on the evolution of AI technology and continued investment in memory production.