Micron (MU) Stock Jumps 4% as New Memory Product Arrives Before Earnings

TLDR

• Micron stock rose 4% Friday to $1,015.80, extending its two-day gain to nearly 10%.
• Micron demonstrated what it calls the world’s first 512GB DDR5 RDIMM, reaching speeds of up to 9,200 MT/s.
• The new module uses 16 watts, more than 60% less power than four 128GB modules providing the same capacity.
• AMD and Intel are validating the technology for future server platforms, with volume production planned for the second half of 2027.
• Micron reports fiscal fourth-quarter earnings on Sept. 30, with Goldman Sachs expecting results above Wall Street forecasts.

Micron (MU) stock closed Friday at $1,015.80, up 3.92%, or 4% rounded. The stock gained another 0.20% after hours and has risen nearly 10% across its last two sessions.

Micron Technology, Inc., MU

The move comes as investors prepare for Micron’s fiscal fourth-quarter earnings report on Sept. 30. The company will release results before holding its earnings call at 2:30 p.m. Mountain time.

Micron also provided investors with another look at its data-center memory roadmap last week. The company demonstrated what it says is the world’s first 512GB DDR5 RDIMM.

The module is designed for next-generation servers and can run at speeds of up to 9,200 MT/s. A 24-slot dual-socket server could support as much as 12TB of DDR5 DRAM.

Micron Pushes Server Memory Capacity Higher

Micron says the 512GB module consumes about 16 watts. Four 128GB modules providing the same capacity would use about 44.2 watts.

That represents a power reduction of more than 60%. Micron also says the module can deliver up to 1.4 times the performance of 256GB DDR5 configurations in certain analytics workloads.

AMD and Intel are both validating the new technology for future server platforms. Volume production is expected to begin during the second half of 2027.

That timeline means the product is unlikely to have much effect on Micron’s near-term financial results. Its launch does, however, show the memory capacity being developed for future AI, analytics and database workloads.

Micron has also been signing longer-term customer agreements. The company said in June that 16 strategic agreements were expected to provide $22 billion in cash deposits and related financial commitments.

Those agreements span data centers, automotive and consumer markets. Micron has also reported about $100 billion in remaining performance obligations from signed agreements.

Wall Street Sets a High Bar for Earnings

Attention now turns to the Sept. 30 earnings report. Micron previously guided for roughly $50 billion in fourth-quarter revenue and an 86% gross margin.

Goldman Sachs analyst James Schneider expects $51.9 billion in revenue, an 87.3% gross margin and adjusted EPS of $32.54. Wall Street consensus estimates cited in the report stand at $50.5 billion, 87% and $31.40, respectively.

Schneider expects tight DRAM and NAND supply conditions to support the quarter. He also expects Micron to maintain or increase its roughly 20% HBM market position.

Investor positioning has strengthened as earnings approach. The number of hedge funds holding Micron rose to 184 during the second quarter from 154 in the first quarter, according to the supplied data.

Short interest stood at 29.7 million units as of Aug. 31, representing 2.64% of the public float. That was down 1.04% from the previous reporting period.

Micron’s Sept. 30 results will provide the next update on DRAM pricing, HBM demand, HBM4 shipments, customer agreements, capital spending and future supply. The company officially confirmed that date on Aug. 26.