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4d ago

Micron Lifts Q4 Outlook on Surging AI Memory Demand

The guidance update projects roughly $11.2 billion in revenue at a 44.5% gross margin, reflecting improvements in DRAM pricing alongside robust HBM orders.

Sanjay Mehrotra, CEO of Micron Technology Inc., holds a chip on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 26, 2024. REUTERS/Brendan McDermid/File Photo
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Overview

  • Micron now expects fourth-quarter revenue of $11.2 billion ± $100 million and adjusted EPS of $2.85 ± $0.07, up from prior guidance.
  • The company raised its adjusted gross margin forecast to about 44.5%, compared with an earlier forecast of 42%, on the back of stronger DRAM pricing.
  • Strong orders for high-bandwidth memory, including HBM3E chips supplied to Nvidia’s Blackwell and Rubin GPUs, underpinned the guidance boost.
  • Micron’s shares climbed roughly 4–5% in early trading following the revised outlook announcement.
  • The firm is advancing a $200 billion US expansion plan, adding $30 billion this summer to secure CHIPS Act incentives and hedge against proposed 100% import tariffs.