DRAM prices are on the path of recovery cycle! Micron Technology, Inc. (MU.US) has raised its fourth quarter performance outlook across the board.

Micron Technology, Inc. (MU.US) has raised its revenue and profit expectations for the fourth quarter, mainly benefiting from the "improvement in prices" of its key products. The storage chip manufacturer announced on Monday that sales for the three months ending on August 28 are expected to reach $11 to $11.3 billion, significantly higher than the previous forecast range of $10.4 to $11 billion. Excluding specific items, earnings per share are expected to be $2.78 to $2.92, higher than the previous guidance of $2.35 to $2.65. The adjusted gross margin is expected to reach 44% to 45%, also better than the previous forecast of 41% to 43%. This optimistic revision marks Micron's emergence from the shadow of disappointing investors in June due to performance expectations. "This guidance revision mainly reflects the improvement in DRAM product prices and the company's excellent operational execution," Micron specifically noted in the statement. The recovery of DRAM prices, combined with strong demand for High Bandwidth Memory (HBM), is becoming the dual engine driving performance. HBM, as a storage chip stack deeply integrated with NVIDIA Corporation processors, is irreplaceable in the field of AI computing, and its complex production process has led to continued supply shortages in the market. As of last Friday's close, Micron's stock price has risen by 41% year-to-date. In pre-market trading on Monday, its stock price further surged by 5.2%. Analyst Jake Silverman of Bloomberg Intelligence pointed out in a research report that Micron's upward revenue guidance indicates that the momentum of the DRAM market is strengthening, "with strong demand for NVIDIA Corporation's Blackwell architecture and Blackwell Ultra driving the significant improvement in the supply-demand balance of storage chips." He believes this may offset concerns in the market about tariff policies and short-term price pressures on HBM. Micron's Chief Business Officer Sumit Sadana will disclose more business details at the 2025 Keybanc Technology Conference in Park City, Utah at 23:00 on Monday Beijing time. It is worth noting that Micron has maintained its leading position in the chip stocks this year, and this upward revision further strengthens its core supplier positioning in the AI computing infrastructure field.