Micron Stock Rises After Chipmaker Raises Guidance

Micron stock’s gains this year are crushing the gains of the iShares semiconductor ETF. (David Paul Morris/Bloomberg)

Micron Technology’s business is doing well.

On Monday, the chip maker announced it is updating its financial guidance for the current quarter. Micron now expects revenue for its fiscal fourth quarter to come within a range of $11.1 billion to $11.3 billion versus its prior range of $10.4 billion to $11 billion. The Wall Street consensus was for $10.75 billion, according to FactSet.

The earnings outlook was also robust. Micron forecasts earnings of $2.85 per share at the midpoint versus the $2.51 analyst consensus.

“This revised guidance reflects improved pricing, particularly in DRAM, and strong execution,” the company said.

In Monday trading, Micron shares traded up 4.7% to $124.50.

Micron is a leader in the markets for DRAM, or dynamic random-access memory, which is used in desktop computers and servers, and for flash memory, which is found in smartphones and solid-state hard drives. It has also become a key supplier of HBM, or high-bandwidth memory, for artificial intelligence servers.

Micron stock has gained 48% this year, compared with a 14% rise for the iShares Semiconductor exchange-traded fund .

Write to Tae Kim at tae.kim@barrons.com