Harsh Chauhan, The Motley Fool

Sat, Jun 7, 2025, 3:37 PM5 min read

• Micron Technology stock has been in red-hot form on the stock market over the past couple of months, and its upcoming quarterly report on June 25 could give it another boost.

• Micron is on track to deliver outstanding growth in its revenue and earnings, driven by the terrific demand for the company's high-bandwidth memory chips.

• The stock's attractive valuation makes it a no-brainer buy going into its earnings report.

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Micron Technology (NASDAQ: MU) stock has made a sharp move higher over the past couple of months -- gaining an impressive 37% as of this writing -- driven by the broader recovery in technology stocks. And it won't be surprising to see this semiconductor stock getting a big shot in the arm when it releases its fiscal 2025 third-quarter results after the market closes on June 25.

Micron is heading into its quarterly report with a major catalyst in the form of artificial intelligence (AI) on its side, which could allow the company to deliver better-than-expected numbers and guidance and send its stock even higher. Let's look at the reasons why that may be the case.

Micron's fiscal Q3 guidance calls for $8.8 billion in revenue at the midpoint of its guidance range. That would be a massive increase over the year-ago period's revenue of $6.8 billion. Meanwhile, the company's adjusted earnings are forecast to jump by just over 2.5 times on a year-over-year basis. Investors, however, shouldn't forget that the booming demand for high-bandwidth memory (HBM) that goes into AI graphics processing units (GPUs) manufactured by the likes of Nvidia and AMD could allow Micron to exceed its guidance.

Micron's HBM has been selected for powering Nvidia's GB200 and GB300 Blackwell systems, and the good news is that the latter reported solid numbers recently. Nvidia's data center revenue shot up 73% year over year to $39 billion in the first quarter of fiscal 2026, with the Blackwell AI GPUs accounting for 70% of the segment's revenue.

Nvidia pointed out that it has almost completed its transition from the previous-generation Hopper platform to GPUs based on the latest Blackwell architecture. What's worth noting here is that the company's Blackwell GPUs are equipped with larger HBM chips to enable higher bandwidth and data transmission.

Specifically, Nvidia's Hopper H200 GPU was equipped with 141 gigabytes (GB) of HBM. That has been upgraded to 192 GB on Nvidia's B200 Blackwell processor, while the more powerful B300 packs a whopping 288 GB of HBM3e memory. Micron management remarked on the company's March earnings conference call that it started volume shipments of HBM3e memory to its third large customer, suggesting that it could indeed be supplying memory chips for Nvidia's latest generation processors.