Micron Raises Quarterly Outlook as Adjusted Gross Margin Reaches 87%
The memory-chip maker projects $61.5 billion in revenue for its fiscal first quarter, above the $56.8 billion market forecast cited in its results.
Micron Technology raised its fiscal first-quarter outlook above market expectations as artificial intelligence infrastructure demand lifted memory-chip pricing and profitability.
The company projects revenue of $61.5 billion for the quarter ending in November, compared with a $56.8 billion analyst estimate cited in its results. Adjusted earnings are forecast at $38.15 per share, above the $36.02 expectation.
Micron reported $54.2 billion in revenue for its fiscal fourth quarter ended Sept. 3. Adjusted earnings reached $33.42 per share, while adjusted gross margin climbed to 87%, ahead of the 86.2% expectation.
Demand for high-bandwidth memory, a type of chip used in AI data centers, is supporting Micron, Samsung Electronics and SK Hynix. The concentration of supply in AI-related products is also limiting memory availability for laptops and game consoles.
Micron expects adjusted gross margin of about 86.3% in its fiscal first quarter, keeping attention on whether strong AI-related demand can sustain elevated memory pricing through the next reporting period.
