Is the Memory Chip Spring Here? Micron’s Earnings Surge Sends Shares Up Nearly 5% Pre-Market

TradingKey - Micron Technology (MU) announced on Monday a significant upward revision to its financial guidance for the fourth quarter of fiscal 2025, citing a sharp improvement in DRAM pricing conditions. The news sent its stock up nearly 5% in pre-market trading.

Updated Financial Guidance:

• Revenue: $11.1–$11.3 billion, above the prior market expectation of $10.4–$11.0 billion
• Gross Margin: 44%–45%, up from the expected 41%–43%
• EPS: $2.78–$2.92, well above the previous forecast range of $2.35–$2.65

[Source: Micron Technology Q4 FY2025 Earnings Guidance, micron.cn]

Management attributed the raised outlook primarily to improved DRAM pricing dynamics — a key indicator that the memory market is rebalancing after prolonged oversupply. This shift typically signals healthier supply-demand fundamentals and sets the stage for a more favorable pricing environment across the industry.

Memory chip pricing has historically been highly cyclical, and the current upswing may mark the continuation of a new, positive pricing cycle.

Beyond the broader industry recovery, Micron emphasized its own "strong execution" as a key contributor to the improved performance — highlighting that the company’s gains are not solely due to market tailwinds, but also reflect internal operational strength.

The improvement in DRAM pricing suggests that customer demand is recovering steadily, inventory digestion is nearing completion, and strong demand for next-generation products like High Bandwidth Memory (HBM) is further bolstering profitability.

Market analysts suggest that if the upward pricing trend in DRAM sustains, the memory semiconductor sector could enter a more stable and profitable phase. In this environment, Micron is well-positioned to capture significant upside during the current upcycle.