Micron Breakout Levels Approaching as Upgraded Guidance Fuels Bullish Sentiment

Micron Technology's stock (NASDAQ: MU) is on the cusp of a potential breakout, propelled by significantly upgraded guidance for its fiscal fourth quarter. MU has rallied 13.2% over the past week, reflecting investor confidence in improved DRAM pricing and strong operational execution.

One of the catalysts for this positive momentum is Micron's updated guidance for the fourth quarter of fiscal year 2025.

The company now expects revenue in the range of $11.2 billion, plus or minus $100 million, a significant increase from the previous forecast of $10.7 billion, plus or minus $300 million. Non-GAAP gross margins are projected to be 44.5%, plus or minus 0.5%, up from 42%, plus or minus 1%.

Most notably, Micron has raised its non-GAAP earnings per share (EPS) guidance to $2.85, plus or minus $0.07, compared to the prior estimate of $2.50, plus or minus $0.15. This translates to an adjusted EPS view of $2.78-$2.92, significantly exceeding the previous consensus of $2.52.

The revised revenue outlook of $11.1B-$11.3B also surpasses the earlier consensus of $10.74B.

This upward revision reflects improved pricing, particularly in DRAM products, and robust operational performance. The memory chip industry is currently experiencing a surge in demand, driven by the proliferation of artificial intelligence (AI) applications and increased investments in data centers.

Micron's strategic focus on high-performance DRAM and NAND products, along with advancements in AI-driven memory solutions, has bolstered its financial performance. The company recently reported a nearly 50% sequential increase in HBM (High Bandwidth Memory) revenue, which now accounts for 15% of its total revenue.

The raised guidance frames the Street's near-term estimates towards an EPS of approximately $2.85 and revenue of approximately $11.2 billion for the fourth quarter.

The key level to watch is the prior 52-week high of around $129.85, or a strong close above $125; a decisive move above these levels could signal a breakout, with plenty of eyes likely scrutinising how the stock reacts there, should a move materialse.

As Micron approaches its fiscal Q4 2025 earnings release shortly after the quarter ends on August 28, investors will be keenly focused on the company's ability to sustain its current momentum. The revised guidance has significantly increased expectations, and the company's performance in the coming weeks will be critical in determining whether Micron can maintain its upward trajectory.