Micron Technology gave an upbeat forecast for the current period, indicating that an industry glut is easing even as the chipmaker continues to face challenges in China.

Sales will be as much as $4.1 billion in the fiscal fourth quarter, the company said in a statement on Wednesday. That compares with an average analyst estimate of $3.87 billion.

"We believe that the memory industry has passed its trough in revenue, and we expect margins to improve as industry supply-demand balance is gradually restored,” Chief Executive Officer Sanjay Mehrotra said in the statement. But recent actions in China — where the government has decided that Micron’s products are a security risk — "is a significant headwind that is impacting our outlook and slowing our recovery,” he said.