Micron Technology, Inc. (MU) is set to report its fiscal third-quarter earnings on Wednesday, after the market closes. Analysts anticipate an earnings per share (EPS) of $1.59, a significant increase from $0.62 in the same quarter last year, marking a year-over-year growth of 156.5%. Revenue is expected to reach $8.84 billion, up 29.7% from last year’s $6.81 billion.
Micron’s robust performance is attributed to strong demand for its products, particularly in artificial intelligence (AI), with a projected growth in the data center high bandwidth memory (HBM) market expected to hit $35 billion this year and $100 billion by 2030. Despite these positive trends, concerns about a declining gross margin—from 39.5% in Q1 to an estimated 36.5% for Q3—highlight the challenges posed by intense market competition.
Market analysts have adjusted the average short-term price target for Micron to $127.07, reflecting a potential 39.2% upside. Stakeholders are advised to maintain their holdings in Micron stock for long-term benefits, while new investors may want to wait for more clarity post-earnings regarding revenue growth and margin stabilization.
