Micron's AI-memory boom fuels lofty earnings forecasts and massive U.S. plant plans
Analyst James Rogan highlights Micron Technology's pivotal role in U.S. AI strategy and predicts a surge in revenue and earnings as the company prepares its fourth-quarter report.
In a market commentary, James Rogan argues that Micron Technology is central to the United States’ effort to stay ahead of China in artificial intelligence, providing the high-bandwidth memory that pairs with Nvidia’s GPUs. He reports that analysts expect the upcoming fiscal fourth-quarter to deliver about $51 billion in sales and earnings near $31 per share, reflecting revenue growth of 349% and earnings growth of 900% with an 86% gross margin.
Rogan points to a severe shortage of both HBM and standard DRAM, which is tightening the market as demand for Nvidia’s latest platforms rises. Micron’s aggressive capital program includes a $50 billion spend on new facilities in Boise, Idaho, and New York, with a broader ambition to invest more than $250 billion domestically to reduce dependence on Taiwanese fabs. He emphasizes that this push aligns with national-security goals amid heightened U.S.-China tensions. The analyst also warns that Micron’s stock remains highly volatile despite its rapid appreciation.
