“Trading idea“: Micron Technology – AI’s Data Hunger Fuels a Profit Boom

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  Serge Nussbaumer
  Chefredaktor

Knock-Out Warrant Call on Micron Technology

Even though geopolitical crises and the customs dispute are currently dominating the headlines, one topic cannot be overlooked: the triumph of artificial intelligence (AI). The prime example of this is NVIDIA, which has reached a new all-time high and once again established itself as the world’s most valuable company. Although Micron Technology is still playing in a different league to NVIDIA, it is also increasingly benefiting from the massive investments in AI technologies. This is also reflected in the recent surprisingly strong figures of the chip company based in the US state of Idaho. Micron was able to increase its total revenue by almost 37% to USD 9.3 billion in the third quarter of the 2024/25 financial year (31 August). Analysts had only expected an increase of 30%. This was due in particular to sales of HBM memory, which increased by half according to CEO Sanjay Mehrotra. High bandwidth memory chips are in high demand for AI applications as they can buffer and output data very quickly. The boom in high-performance memory ensured that revenue in both the data centre division and the Group reached new highs. And the curve continues to point upwards. J.P. Morgan expects Micron’s HBM sales to accelerate over the next one to two quarters and could reach annualised sales of USD 8 billion.

Translated with DeepL.com (free version)

‘Micron exceeds analysts’ forecasts with a 37% increase in sales’

The company is also currently making dynamic progress on the profit side. Earnings per share tripled to USD 1.91. The company is also looking to the future with confidence. CEO Mehrotra emphasised that Micron is ideally positioned to benefit from ‘AI-driven memory demand’, pointing to record-high DRAM sales and strong growth in the consumer segment. For the current quarter, the 67-year-old CEO forecast sales of USD 10.4 to USD 11.0 billion and earnings per share of USD 2.50, also exceeding expectations. ‘We are on track to achieve record sales with solid profitability and free cash flow,’ said Mehrotra. Micron is investing heavily to keep pace with the boom. USD 150 billion is being invested in the expansion of domestic capacities, while a further USD 50 billion is being channelled into research and development – a clear sign of confidence in long-term growth.

Both analysts and market participants were enthusiastic about the latest developments. While the share initially jumped upwards, UBS and Rosenblatt, among others, raised their price targets to USD 155 and USD 200 respectively. Overall, the share has already gained more than 50% this year. As long as the current strong global AI investment cycle continues and provides momentum in the memory sector, the Micron share is unlikely to have reached its high yet. A knock-out warrant call can be used to accelerate the current breakout after months of consolidation at the USD 100 mark. The newly issued long security from BNP Paribas has a leverage of 4.92 and the stop loss is around a fifth away from the current level.

Product information*

ISIN	CH1452898955
Product type	Knock-Out Warrant Call
Underlying	Micron Technology
Issuer	BNP Paribas
Rating	A+ (S&P)
Trading currency	CHF
First trading day	23.06.2025
Maturity	open-end
Underlying	USD
Leverage*	5.87
Stop Loss*	USD 100.189
Financing level**	8.89%
Ask*	CHF 1.70
Exchange	Swiss DOTS
Weblink	payoff.ch/CH1452898955

Micron Technology share price performance