Why Micron (MU) Is Up 17.1% After Upgrading Guidance on DRAM Pricing and AI-Fueled Demand

• Micron Technology recently raised its fiscal fourth quarter 2025 earnings guidance, now expecting revenue of US$11.2 billion ± US$100 million and higher profit margins due to improved DRAM pricing and robust AI infrastructure demand.
• The company also unveiled the industry’s highest-density radiation-tolerant SLC NAND chip for space applications, marking a significant step into high-value, specialized memory markets with rigorous NASA and military certification.
• We'll explore how Micron's boosted outlook, driven by stronger DRAM pricing and AI demand, could influence its long-term growth narrative.

Find companies with promising cash flow potential yet trading below their fair value.

Micron Technology Investment Narrative Recap

To be a Micron Technology shareholder, you need to believe that the company will capture sustained demand from AI and data center growth, enabling stronger DRAM pricing and margin expansion. The recent upward revision in Micron’s Q4 2025 guidance directly strengthens the main near-term catalyst, robust AI-driven demand boosting profitability, while at least for now, competitive pricing pressure remains the key risk. The immediate impact is meaningful, as improved outlook ties closely to the main growth narrative and risk factors.

Of the recent announcements, the raised Q4 guidance stands out as most relevant: management now expects revenue to reach US$11.2 billion, with better margins anticipated from favorable DRAM pricing and strong AI sector tailwinds. This announcement bolsters confidence around Micron’s ability to benefit from industry trends in high-value memory, while also signaling that demand fundamentals remain favorable despite market cyclicalities and ongoing global competition.

Yet, in contrast to these positives, investors should keep in mind ongoing challenges from major Asian rivals and what this could mean for…

Read the full narrative on Micron Technology (it's free!)

Micron Technology's outlook anticipates $52.8 billion in revenue and $13.2 billion in earnings by 2028. This reflects a 16.0% annual revenue growth rate and a $7.0 billion increase in earnings from the current $6.2 billion.

Uncover how Micron Technology's forecasts yield a $148.56 fair value, a 16% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members placed fair value estimates for Micron as low as US$69.17 and as high as US$163.74, across 46 perspectives. While this illustrates wide disagreement among private investors, the company’s future revenue growth tied to AI applications may help frame these differences within the context of fast-changing demand and competition.

Explore 46 other fair value estimates on Micron Technology - why the stock might be worth as much as 28% more than the current price!

Build Your Own Micron Technology Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Micron Technology research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Micron Technology research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Micron Technology's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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