Micron’s $49B-$51B Q4 Revenue Forecast Strengthens Nvidia’s Memory Supply Outlook
NVDA•Micron posted Q3 revenue of $41.46 billion and adjusted EPS of $25.11, beating consensus estimates, and unveiled $49 billion to $51 billion Q4 revenue guidance that exceeds the $43.24 billion forecast. Backed by $7.1 billion in Capex and $18.3 billion free cash flow, memory supply for Nvidia’s AI processors is set to strengthen.
1. Memory Demand and Nvidia’s AI Growth
Rapid expansion of AI data centers is driving unprecedented demand for high-bandwidth memory, a critical component in Nvidia’s GPU products. Constrained supply among few vendors has pushed memory prices higher, impacting Nvidia’s production costs and timelines.
2. Micron’s Q3 Financial Outperformance
Micron reported record fiscal Q3 revenue of $41.46 billion and adjusted earnings of $25.11 per share, significantly surpassing analyst expectations and reflecting robust sales of HBM and LPDDR5X products that power Nvidia’s AI accelerators.
3. Q4 Guidance Boosts Nvidia Supply Outlook
Micron’s fiscal Q4 revenue forecast of $49–51 billion and EPS guidance of $30.00–32.00 outpace consensus by roughly $6 billion and $5 per share respectively, signaling increased memory capacity availability for Nvidia’s upcoming GPU launches.
4. Capital Investments and Supply Chain Expansion
During Q3, Micron invested $7.1 billion in capital expenditures and generated $18.3 billion of free cash flow to ramp HBM4 shipments and develop next-gen HBM4E modules, enhancing memory throughput and supply consistency for Nvidia’s AI hardware roadmap.
