VistaShares said Micron will release its earnings report on June 24, noting the company’s revenue has posted triple-digit growth for multiple consecutive quarters. According to Odaily, VistaShares said the key indicator for whether the current memory cycle is sustainable or has peaked is gross margin, adding that Micron’s latest guidance is near 81%, compared with 37% a year earlier.

VistaShares said revenue reflects delivered results and, in a market where demand exceeds supply, is a backward-looking figure locked in by contracts signed several quarters earlier. It added that profit margins reflect pricing power, which it said tends to change first when supply begins to catch up with demand.

VistaShares said memory markets typically deteriorate in margins rather than in revenue.