3 October 2025 Yipin Cai, CFA +852 2123 2669 yipin.cai@bernsteinsg.com Global Memory MEMORY TRACKER (Sep): Strong spot price indicating strong contract price later Mark Li +852 2123 2645 mark.li@bernsteinsg.com Edward Hou, CFA +852 2123 2623 edward.hou@bernsteinsg.com This monthly tracker (download dataset here) summarizes spot and contract price data released by TrendForce/DRAMeXchange & compares that with our model & investor expectation. Another monthly tracker complements this with data from WSTS. Addit ...

Core Insights - Micron Technology (MU) experienced a significant rebound in profitability during Q3 of fiscal 2025, reporting a gross margin of 39%, which is an increase of 110 basis points from the previous quarter and 250 basis points above prior guidance [1][10] - The improvement in gross margin was primarily driven by better pricing for DRAM and NAND, along with cost discipline and volume growth [1][2] - Micron anticipates further margin expansion in Q4, projecting gross margins of 42% (+/-100 basis points), indicating a 300 basis point improvement quarter-over-quarter [3][10] Demand and Supply Dynamics - The demand environment is constructive, with strong demand for DRAM and higher-value memory products expected to support margin expansion [4] - Tight inventory levels, particularly for leading-edge and DRAM products, are likely to sustain pricing strength into Q4 [4][5] - For calendar year 2025, Micron forecasts high-teens percentage growth in industry DRAM bit demand and low double-digit percentage growth in NAND bit demand [5] Competitive Landscape - Micron does not have direct competitors listed on U.S. stock exchanges in the memory chip space but competes with Western Digital Corporation (WDC) in the NAND market and Seagate Technology Holdings plc (STX) in the data storage market [6][7] Financial Performance and Valuation - Year-to-date, Micron's shares have increased by 42%, outperforming the Zacks Computer - Integrated Systems industry's growth of 26.6% [8] - Micron's forward price-to-sales ratio stands at 2.91X, which is lower than the industry's average of 3.83X [11] - The Zacks Consensus Estimate for Micron's fiscal 2025 earnings indicates a year-over-year growth of 497.69%, with the 2026 earnings estimate showing growth of 57.36% [14]