Will Microns AI-Fueled DRAM surge offset NAND challenges in Q3?

Key tech partnerships strengthen Microns position

Microns partnerships with major tech players such as NVIDIA, Advanced Micro Devices, Inc. (AMD – Free Report) and Marvell Technology, Inc. (MRVL – Free Report) are giving it a big edge in the AI race. These partnerships help Micron secure steady revenue streams and cement its reputation as a trusted supplier in the high-performance computing space.

Micron‘s ties with NVIDIA are especially valuable. NVIDIA has confirmed Micron as a key HBM supplier for its upcoming GeForce RTX 50 Blackwell GPUs, linking Micron to the fast-growing AI hardware ecosystem. Advanced Micro Devices is another major partner. Micron’s HBM3E chips are being used in Advanced Micro Devices upcoming AI-enabled Instinct MI350 GPUs, which should boost sales as AI infrastructure spending rises. Micron is likely to have capitalized on this massive AI infrastructure buildout in the to-be-reported quarter.

Micron is also working with Marvell on custom memory solutions. Marvell is building advanced AI silicon, and Microns memory chips are part of its high-performance systems. These partnerships show that Micron is becoming a go-to supplier for companies building AI data centers and related technology.

Weak NAND market limits Microns earnings upside

While Microns DRAM business is booming, the companys NAND segment remains a weak spot. The NAND market continues to struggle with oversupply and weak pricing, which are hurting profitability. Although there have been slight pricing improvements in the first half of 2025, the recovery has been slower than management had hoped.

Management previously admitted that NAND prices aren‘t rebounding as fast as DRAM prices. Even with some small price gains quarter over quarter, it’s unlikely that NAND margins will show meaningful improvement. This means that the NAND side of the business could partially offset the strong gains from DRAM and limit this Zacks Rank #3 (Hold) companys overall earnings growth in the third quarter.

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