Micron Technology, Inc. (NASDAQ: MU) shares rose in pretrading after the company revised its fourth-quarter fiscal 2025 outlook upward, citing improved DRAM pricing, favorable market conditions, and strong operational execution.
The updated guidance, announced Monday, signals confidence in the company’s near-term performance amid robust demand for memory products across data center, artificial intelligence, and mobile markets.
Upgraded financial projections
The Boise, Idaho-based chipmaker now forecasts revenue of $11.2 billion, plus or minus $100 million, for the quarter ending August 28, 2025.
This marks an increase from its prior guidance of $10.7 billion, plus or minus $300 million.
The raised outlook reflects stronger-than-expected market conditions and customer demand, particularly in DRAM products.
Micron has also improved its non-GAAP gross margin forecast to 44.5%, plus or minus 0.5%, up from the earlier range of 42.0%, plus or minus 1.0%.
In terms of profitability, the company now expects non-GAAP earnings per share (EPS) of $2.85, plus or minus $0.07, compared with its prior estimate of $2.50, plus or minus $0.15.
Operating expenses guidance remains largely unchanged, with a slight adjustment to $1.22 billion, plus or minus $15 million.
22 analysts have recently raised their earnings estimates for the company.
Micron shares were up 4.72% in premarket trading.
Product developments and market position
In July, Micron announced new product innovations aimed at strengthening its competitive edge in the data center and specialized markets.
The company unveiled three new data center solid-state drives (SSDs) built with its G9 NAND technology.
Among these is what Micron claims is the world’s first PCIe Gen6 NVMe SSD, the 9650 SSD, offering sequential read speeds of 28 GB/s—double the performance of competing products.
Micron also introduced a 256-gigabit radiation-tolerant NAND flash memory device designed for space applications.
The company describes it as the highest-density radiation-tolerant single-level cell (SLC) NAND available today, underscoring its diversification into high-reliability markets.
Analyst sentiment and industry outlook
Analyst sentiment remains positive. Bernstein SocGen Group reiterated its outperform rating on Micron, citing stronger-than-expected results in the high-bandwidth memory (HBM) segment.
HBM revenue grew nearly 50% quarter-over-quarter, surpassing $1.5 billion, according to the firm. CFRA also raised its price target for Micron to $155 from $117 while maintaining a Buy rating, highlighting HBM growth as a key driver of future earnings.
The broader AI memory chip market is expected to expand significantly over the coming years.
SK Hynix, a major competitor, recently projected a 30% annual growth rate for the sector through 2030, reflecting industry confidence despite concerns about rising prices.
Micron Executive Vice President and Chief Business Officer Sumit Sadana is set to discuss the company’s performance and market strategy further during a fireside chat at the 2025 Keybanc Technology Conference in Park City, Utah.
With a strengthened outlook, new high-performance products, and a growing foothold in high-value memory segments, Micron is positioning itself to capitalize on the rising demand for advanced semiconductor solutions in the AI-driven era.
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