Pre-market up nearly 5%! Improvement in DRAM prices drives profit increase, Micron raises fourth-quarter performance expectations across the board

On Monday, due to the significant DRAM pricing environment, Micron Technology substantially raised its performance guidance for the fourth quarter of fiscal year 2025, with revenue expectations adjusted to USD 11.1 billion to USD 11.3 billion, and gross margin guidance increased to 44% to 45%, up from the previous estimate of 41% to 43%.

Additionally, Micron Technology also expects adjusted earnings per share for the fourth quarter to be between USD 2.78 and USD 2.92.

The company specifically mentioned the improvement in DRAM pricing conditions, which typically reflects an improvement in the supply-demand balance in the memory market. The improvement in DRAM pricing has created a more favorable pricing environment for the entire memory chip industry, potentially signaling that the historically cyclical nature of memory chip pricing is entering a positive cycle.

Following the announcement, Micron Technology's stock rose nearly 5% in pre-market trading.

Industry Supply-Demand Improvement Drives Better Pricing Environment

Micron's management attributed the performance upgrade to the improvement in DRAM pricing and strong execution, indicating both favorable industry conditions and company-specific operational advantages. The improvement in DRAM pricing typically means that the supply-demand balance in the memory market is becoming healthier, creating a more favorable pricing environment for industry participants.

The historical cyclical nature of memory chip pricing suggests that the current improvement may signal the continuation of a more positive pricing cycle. This improvement in supply-demand balance is not only beneficial for Micron but may also bring a more stable profit environment for the entire memory industry