Micron Q3 Earnings Preview: AI in Focus, Analyst Says ‘Only Positive News…for a While to Come’ – Micron Technology (NASDAQ: MU)

Semiconductor company Micron technology UM is expected to report its third-quarter financial results after the market closes Wednesday.

Here are the earnings estimates, what analysts are saying, and the key things to watch.

Earnings Estimates: Analysts expect Micron to report third-quarter revenue of $6.63 billion, according to data from Benzinga Pro.

The revenue estimate would represent an improvement from the $3.75 billion reported in the third quarter of last year. Micron has beaten analysts’ revenue estimates in four straight quarters and seven of the last ten quarters overall.

Analysts expect Micron to report third-quarter earnings per share of 49 cents, compared with a loss of $1.43 in the third quarter of last year. The company has beaten earnings estimates in four straight quarters and eight of the last ten quarters.

The company’s forecast calls for third-quarter revenue of $6.6 billion, plus or minus $200 million, and earnings per share of between 38 cents and 52 cents, according to estimates given in second quarter results.

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What the analysts say: Micron received numerous analyst updates and price target changes ahead of the third quarter earnings report.

Higher average selling prices in third quarter could be key to watch: Wedbush analyst Matt Bryson.

The analyst has an outperform rating and recently raised the price target from $130 to $170.

Bryson expects Micron to beat analyst estimates and raise its guidance. The analyst found that Micron’s average selling prices, revenue, margins and earnings per share were all trending upward.

“We expect only positive news for MU’s financials for some time to come, and we expect the stock to continue to rise until we see a change in the industry’s investment plans,” Bryson said.

Third-quarter beat and recovery also expected by Rosenblatt analyst Hans Mosesmann.

The analyst has a Buy rating and a $225 price target on Micron.

Mosesmann expects growing demand for artificial intelligence applications to continue in Micron’s third quarter, with several positive trends continuing into 2026 and 2027.

Here are more analyst notes on Micron and their price targets:

Morgan Stanley: Equal weight rating, price target raised from $130 to $140

City : Buy rating, rice target raised from $150 to $175

Baird: Outperform rating, price target raised from $150 to $172

Raymond James: Outperform rating, price target raised from $130 to $160

Wolfe Research: Outperform rating, price target raised from $150 to $200

Key things to watch out for: Micron is one of the companies benefiting from growth in the artificial intelligence sector.

“Our preeminent product portfolio positions us well to deliver a strong second fiscal half in 2024. We believe Micron is one of the largest beneficiaries in the semiconductor industry of the multi-year opportunity presented by AI.” , said the CEO of Micron. Sanjay Mehrota said after second quarter results.

Investors will likely look for an update on customer demand and AI growth during quarterly results.

A recent report from Bloomberg indicated that Micron was facing delays in building a factory site in New York. Delays have pushed first construction back to 2025. The project could help Micron increase domestic chip production.

Micron may share an update on this recent delay and other production projects that could impact future growth.

MU Price Action: Micron shares closed Tuesday at $141.12, compared with a 52-week trading range of $60.50 to $157.54. Micron stock is up 113% over the last year and more than 60% year to date in 2024.

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