DRAM Demand Drives Micron's Q4 Earnings Beat

Micron Technology has reported improved DRAM pricing and strong execution, boosting its fiscal Q4 earnings outlook to $2.85 a share on revenue of $11.2 billion. The company's DRAM sales have surged, driven by AI adoption in smartphones, which is expected to continue growing with more launches featuring 12 GB or more of capacity. Analysts have revised their stock price targets for Micron following the updated outlook.

Micron Technology (MU) has reported improved DRAM pricing and strong execution, boosting its fiscal Q4 earnings outlook to $2.85 a share on revenue of $11.2 billion. The company's DRAM sales have surged, driven by AI adoption in smartphones, which is expected to continue growing with more launches featuring 12 GB or more of capacity [1].

The Boise, Idaho-based company, which makes memory and storage chips for data centers, computers, and smartphones, cited improved DRAM pricing and strong execution as the key drivers behind the upward revision in its Q4 guidance. Micron had previously guided to fiscal Q4 adjusted earnings of $2.50 a share on sales of $10.7 billion [1].

The company's DRAM sales reached $7.1 billion in its fiscal third-quarter, up 51% from a year earlier and accounting for 76% of its total revenue [1]. Micron's CEO Sanjay Mehrotra noted that AI adoption remains a key driver of DRAM content growth for smartphones, with more smartphone launches featuring 12 GB or more of capacity compared to the average smartphone today [1].

Analysts have revised their stock price targets for Micron following the updated outlook. Mizuho raised its price target on Micron to $155 from $150 and affirmed an outperform rating on the shares [1]. JP Morgan boosted its target on Micron to $185 from $165 and maintained an overweight rating on the shares [1]. Deutsche Bank raised its target on Micron to $155 from $150 and reiterated a buy rating [1].

Micron shares are up 46% this year and up 32% from this time in 2024, reflecting the market's positive reaction to the company's revised guidance [1]. The company's strong performance comes amid a global market for memory chips valued at $240.77 billion last year and expected to more than triple to $791.82 billion by 2033 [1].

References:
[1] https://finance.yahoo.com/news/micron-analysts-parse-updated-outlook-182745888.html
[2] https://www.trendforce.com/news/2025/08/12/news-micron-raises-q4-forecast-on-strong-dram-pricing-and-ai-demand/
[3] https://simplywall.st/stocks/us/semiconductors/nasdaq-mu/micron-technology/news/why-micron-mu-is-up-171-after-upgrading-guidance-on-dram-pri