DRAM Demand Powers Micron Technology's Growth: Will the Momentum Last?

Core Insights - Micron Technology's DRAM revenues increased by 51% year over year in Q3 of fiscal 2025, reaching $7.1 billion, driven by growth in data center, automotive, PC, and mobile markets [1][10] - The DRAM segment accounted for 76% of the company's total revenue, with significant contributions from low-power server DRAM and high bandwidth memory (HBM) chips, particularly in AI workloads [2][3] - The company anticipates a high-teens percentage growth in industry DRAM bit demand for calendar 2025, supported by low inventory levels and higher-value product shipments [4] Financial Performance - The Zacks Consensus Estimate for fiscal 2025 DRAM revenues is $27.95 billion, indicating a year-over-year growth of 58.8%, with total revenues expected to grow 46.5% to $36.79 billion [5] - Micron's shares have gained 38.2% year to date, outperforming the Zacks Computer - Integrated Systems industry growth of 29.3% [8] - The forward price-to-sales ratio for Micron is 2.75X, which is lower than the industry average of 3.92X, indicating potential valuation attractiveness [11] Earnings Estimates - The earnings estimates for fiscal 2025 imply a year-over-year growth of 497.7%, while the 2026 estimates suggest a growth of 57.9%, with upward revisions in the past 30 days [14]