Micron Technology (NASDAQ: MU) stock climbed 4.7% last week as Wall Street rallied on optimism over easing geopolitical risks and expectations for interest rate cuts. The company’s upcoming earnings report and booming high-bandwidth memory (HBM) business have investors bullish heading into July.
Global relief, Fed optimism lift Micron
Investor sentiment got a boost from the announced ceasefire between Israel and Iran and dovish remarks from Federal Reserve Chair Jerome Powell, who hinted at potential rate cuts as early as next month. These developments sent the S&P 500 up 1.1% and the Nasdaq up 1.4%, with Micron outperforming both.
Q3 earnings: Record revenue, booming data center growth
Micron reported $9.3 billion in Q3 revenue, a 37% year-over-year increase and its highest quarterly total ever. Operating income soared to $2.17 billion, and net income jumped 5.7x to $1.89 billion.
Its Compute and Networking unit, which includes HBM memory for AI chips, delivered $5.07 billion in revenue, up 97% year-over-year. This marks Micron’s fourth consecutive record quarter in data center sales.
HBM demand soars
Micron is a critical supplier of HBM3E memory for Nvidia’s Hopper and Blackwell GPUs and AMD’s Instinct accelerators. The company is also prepping to roll out HBM4 in 2026, which will deliver 60% more bandwidth and 20% less power usage than its predecessor.
Micron estimates the HBM market will hit $35 billion in 2025 and grow to $100 billion by 2030. CEO Sanjay Mehrotra said HBM sales surged nearly 50% sequentially in Q3, with more capacity already allocated through 2026.
What’s next: Q4 guidance and new investments
Micron forecasts Q4 revenue of $10.7 billion and EPS of $2.29, up 38% and 190%, respectively, from a year ago. The company holds $10.8 billion in cash and is investing heavily in U.S. foundry expansion—with $14 billion in capital spending planned for FY2025.
The firm is also sampling next-gen LPDDR5X and HBM4 memory using EUV lithography, promising improved density, efficiency, and speed.
Bottom line: Micron’s AI future looks bright
Despite a 42% YTD gain, Micron stock remains cheap at a 22.5 P/E ratio, well below Nvidia’s 50.9. With major HBM supply deals, soaring data center demand, and bullish long-term forecasts, Micron stock is increasingly seen as a top-tier AI hardware play.
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