Micron Technology, Inc. (MU), a Boise-based memory maker, is poised to report its fiscal Q3 earnings on Wednesday, amid significant market volatility in AI and semiconductor stocks. The company has announced a strategic partnership with AI lab Anthropic, which includes a multi-year supply agreement for high-bandwidth memory, DRAM, and SSDs, propelling shares nearly 7% to a record in anticipation of the earnings report.
Micron expects fiscal Q3 revenue between $33.5 billion and $34.25 billion, marking a potential 40% increase from the previous quarter, with gross margins around 81% and adjusted EPS in the range of $19.15. The Zacks Consensus Estimate predicts revenue of $36.5 billion and adjusted EPS of $20.98, a year-over-year increase of over 290%. Micron’s strong performance is underscored by a 12-quarter streak of exceeding earnings estimates and current analyst projections reflecting bullish sentiment.
Despite a broader sell-off in the AI chip market, Micron maintains a favorable valuation, trading at roughly 19 times forward earnings, which remains lower than its peers amidst a structural shift in demand driven by AI. With over $725 billion earmarked for AI data-center capital expenditure through 2026, Micron is positioned to capitalize on ongoing industry-wide supply constraints.
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