Micron raises its sales, earnings outlook on improved prices

Micron Technology Inc. raised its fiscal fourth-quarter revenue and earnings outlook, citing “improved pricing” for a key product.

Sales for the three months ending Aug. 28 will be $11.1 billion to $11.3 billion, the company said in a statement Monday. It previously forecast fourth-quarter sales of $10.4 billion to $11 billion.

Earnings per share, excluding some items, will be $2.78 to $2.92. Micron had previously said it expected $2.35 to $2.65. Adjusted gross margins for the quarter will be 44% to 45%, compared with an earlier projection of 41% to 43%.

Micron, which has been one of the best-performing chip stocks this year, disappointed investors in June with an outlook that fell short of lofty expectations.

“This revised guidance reflects improved pricing, particularly in DRAM, and strong execution,” Micron said in Monday’s statement, referring to a category of product called dynamic random access memory.

Micron’s growth is being fueled by high-bandwidth memory, or HBM – bundles of dynamic random access memory chips closely connected to processors from Nvidia Corp. – which is vital to AI computing. That’s helped drive up prices as supply remains constrained due to the complexity of producing and deploying such components.

Shares of Boise, Idaho-based Micron rose 4.1% in Monday trading. The stock was up 41% so far this year through Friday’s close.

Micron’s updated sales guidance points to growing momentum behind DRAM, Bloomberg Intelligence analyst Jake Silverman wrote in a note. High-bandwidth memory is “contributing meaningfully to a healthier supply-demand balance on strong Nvidia Blackwell demand and Blackwell Ultra procurement,” he said.

That could offset concerns related to tariffs and near-term pricing pressure on HBM, he added.

Micron Chief Business Officer Sumit Sadana is expected to share more details during the 2025 Keybanc Technology Conference in Park City, Utah, at 9 a.m. Mountain time on Monday.