Core Viewpoint - Micron Technology has raised its revenue and profit expectations for the fourth fiscal quarter, driven by price improvements in key products, particularly in the DRAM sector [1][4]. Group 1: Financial Performance - Micron expects fourth-quarter revenue to be between $11.1 billion and $11.3 billion, up from the previous estimate of $10.4 billion to $11 billion [5]. - The company has also increased its adjusted gross margin forecast to 44% to 45%, compared to the prior estimate of 41% to 43% [5]. - Earnings per share guidance has been raised to $2.78 to $2.92, up from the previous range of $2.35 to $2.65 [5]. - Adjusted operating expenses have been slightly increased to $1.22 billion, from a previous estimate of $1.20 billion [6]. Group 2: Market Dynamics - The demand for storage chips is being driven by AI, with Micron's Chief Business Officer noting strong pricing trends and successful price increases [8]. - Limited HBM capacity and robust AI demand have allowed Micron to set higher prices for its products, indicating a shift from previously lower profit margins [8]. - Micron's DRAM sales reached record highs, with HBM revenue increasing nearly 50% quarter-over-quarter [8]. Group 3: Analyst Insights - Analysts from Mizuho stated that the company's performance is a strong rebuttal to skeptics of Micron's outlook [6]. - Mizuho's report highlighted that Micron's next-generation HBM4 chips are expected to see price increases of 15% to 20% due to larger die sizes [10]. - The average selling price of HBM compared to traditional DRAM could yield approximately five times the increase, with improved yields and process advancements leading to better gross margins [11].