Key takeout
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Micron's DRAM revenues reach $700 million in the third quarter, with an AI-driven demand expected to increase by 49.2% year-on-year.
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MU benefits from strong relationships with Nvidia, AMD and Marvell in the booming AI infrastructure market.
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NAND's pricing and oversupply could limit Micron's overall revenue growth despite the strength of DRAM.
Micron Technology, Inc. (MU-Free Report) reported its results for the third quarter, 2025, on June 25th, with expectations rising. The company is gaining momentum due to a surge in AI investment and strong ties with major high-tech companies. While Micron's DRAM business is thriving in this AI boom, the NAND business is under pressure and has been able to consider overall revenue growth.
AIERED demand is likely to boost sales of Micron's DRAM
Micron found himself in the sweet spot amid the AI revolution. This drives the surge in demand for memory and storage solutions. AI systems, particularly large-scale language models (LLMS) and generated AI applications, require large-scale data processing and storage capabilities, increasing the need for high-performance DRAM.
Micron's DRAM segment is expected to be the star of its third quarter reporting. Zacks Consensus estimates of DRAM revenues at $7 billion, growing 49.2% year-on-year. This not only highlights Micron's market strength, but also improves pricing dynamics in the DRAM industry. After struggling with oversupply issues over the past few years, the memory market has shown signs of stabilization, strengthening pricing power and increasing micron margins.
Furthermore, mass production of Micron's HBM3E (high bandwidth memory) Nvidia CorporationNext-generation AI chips including H200 GPU (NVDA-Free Report) have been deployed as a key supplier of AI Powerhouses. With HBM memory shortages, Micron's price leverage for these premium products could be the major DRAM revenue booster for the third quarter, as NVIDIA drives unrelenting AI demand.
Micron Technology, Inc. Prices and EPS Surprise
Major technology partnerships strengthen Micron's position
Micron's partnership with major tech players such as Nvidia; Advanced Micro Devices, Inc. (AMD-Free Report) and Marvell Technology, Inc. (MRVL – Free Report) gives you a huge advantage in AI racing. These partnerships help Micron ensure a stable revenue stream and solidify its reputation as a trusted supplier in the high-performance computing space.
Micron's relationship with Nvidia is especially valuable. Nvidia has confirmed that Micron is the leading HBM supplier for its upcoming GeForce RTX 50 Blackwell GPUs, linking Micron to the fast-growing AI hardware ecosystem. Advanced microdevice is another major partner. Micron's HBM3E chip should increase sales as AII infrastructure spending rises. Micron may be taking advantage of this massive AI infrastructure buildout in previously reported quarters.
Micron also works with Marvell on custom memory solutions. Marvell is building advanced AI silicon, and Micron's memory chips are part of a high-performance system. These partnerships show that Micron has become a go-to supplier for businesses building AI data centers and related technologies.
The weakness of the NAND market outweighs Micron's revenues
Micron's DRAM business is booming, but the company's NAND segment remains a weak spot. The NAND market continues to struggle with oversupply and weak pricing, which are undermining profitability. There were slight pricing improvements in the first half of 2025, but the recovery was slower than management had hoped.
Management previously confirmed that NAND prices have not rebounded as quickly as DRAM prices. Even with small quarterly price increases over the quarter, the NAND margin is unlikely to show any meaningful improvement. This means that the NAND side of the business can partially offset strong profits from DRAM and limit the overall revenue growth of this Zacks Rank #3 (hold) company in the third quarter.
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