Micron Technology raised its fiscal fourth-quarter outlook, citing improved DRAM pricing and strong execution as demand trends strengthen late in the quarter ending August 28. The company now expects revenue of $11.2 billion ± $100 million, up from its previous forecast of $10.7 billion ± $300 million. Micron also projects a non-GAAP gross margin of 44.5% ± 0.5%.
The new guidance lifts the revenue midpoint by roughly $500 million, while narrowing the range, which often signals better visibility into orders and production as quarter-end approaches. The gross margin outlook points to healthier pricing and scale benefits, consistent with a tightening memory market.
What it means: Improved DRAM pricing typically reflects a mix of strong end-demand and disciplined supply, especially from data centers and AI-related workloads, as well as ongoing recovery in PCs and mobile devices. When pricing firming aligns with operational execution, memory makers can see outsized profit leverage relative to revenue gains.
Why it matters: A higher revenue bar and steady margin outlook are constructive indicators for Micron’s near-term profitability. If pricing momentum persists and supply remains balanced, the company could carry this strength into the next fiscal year, supporting continued investment in advanced memory products.
Additional comments:
– The narrowed revenue range suggests Micron is seeing stable bookings and fewer late-quarter surprises.
– Memory cycles can be volatile, but pricing improvements at this stage of the cycle are generally a positive read for the broader memory ecosystem.
– Investors often watch gross margin closely in memory upswings; holding the mid-40s would underscore pricing power and cost discipline.
Summary:
Micron lifted fourth-quarter guidance to $11.2 billion ± $100 million in revenue and expects a non-GAAP gross margin around 44.5% ± 0.5%, attributing the raise to firmer DRAM pricing and strong execution. The tighter guidance range indicates improved visibility, and the margin outlook suggests solid operating leverage as the memory market strengthens.