Micron Technology has seen a noticeable uptick in DRAM sales lately. Dynamic Random Access Memory, or DRAM, plays a crucial role in modern computing. It’s what allows processors to access frequently used data swiftly, ultimately enhancing the performance of applications. Without it, well, things would run much slower.
According to IMARC Group, the global memory chip market was valued around $240.77 billion last year. They project it could soar to beyond $791.82 billion by 2033. The Asia-Pacific region leads this market, holding a 39.4% share in 2024, largely due to its strong manufacturing capabilities and advancements in technology. Their investment in research is also likely to fortify this dominance.
Micron, as the largest memory chip maker in the U.S., is capitalizing on better DRAM pricing and effective execution. The company has raised its revenue outlook for the quarter ending August 28, expecting to report an adjusted earnings of $2.85 per share. Analysts had anticipated a $2.51 per share profit, with revenues around $10.755 billion. This is a bump from their previous fourth quarter earnings of $2.50 a share on $10.7 billion in sales.
Looking at last year’s figures, Micron adjusted earnings for the fourth quarter came in at $1.18 with about $7.755 billion in revenue. Interestingly, the company’s third quarter revenue for DRAM reached $7.1 billion, which is a significant year-on-year increase of 51%, making up 76% of the total revenue.
Sanjay Mehrotra, Micron’s CEO, mentioned that artificial intelligence (AI) adoption is a major factor driving the growth of DRAM in smartphones. There’s even excitement around the upcoming launch of smartphones boasting over 12GB of RAM, compared to the current average of 8GB.
As for market reactions, Chris Versace from TheStreet Pro expressed admiration for Micron’s revised outlook, calling the current demand for AI and data center chips strong. Recent reports, including revenue data from Taiwan Semiconductors and Foxconn, highlight the resilience in demand for AI and data center chips. He noted that Foxconn also anticipates a surge in connected device markets as they approach the second half of 2025.
Reflecting on broader trends, Versace sees positive implications for stocks like Nvidia and Marvell, among others. Micron’s stock has appreciated by 46% this year, with a rise of 32% since the beginning of 2024. Notably, Mizuho has reassessed Micron’s price target, now ranking it at $155, highlighting solid pricing and operations in DRAM.
JP Morgan and Deutsche Bank have also adjusted Micron’s price targets, confirming a positive outlook for DRAM prices. They’ve indicated strong confidence in Micron’s ability to sell its high-bandwidth memory supply effectively in the coming years.
