What To Expect From Micron Tech's Q3 Earnings - Bullish Analyst Lays Out Forecast

Rosenblatt analyst Hans Mosesmann maintained Micron Technology Inc MU as a Buy with a $225 price target.

Mosesmann expects Micron to deliver a beat-and-raise as it enters one of the most significant memory cycles in history, driven by the increasing demand for memory in artificial intelligence applications, a new ramp-up in the High-bandwidth memory (HBM) industry that reduces supply available for traditional DRAM, and ongoing discipline in memory capital expenditures.

The analyst noted this trend will continue into 2026/27.

Also Read: Micron’s New York Chip Plant Faces Delays Due to Endangered Bats

Mosesmann flagged that the industry’s HBM supply remains critical to monitor as it struggles to meet demand, extending well into calendar 2025.

As per the analyst, the industry’s ability to yield HBM3e continues to pose challenges, which are further compounded by the persistent acceleration in demand.

Regarding MU, his perspective on HBM concerns not solely its implications for its topline upside but also the broader implications for DRAM bit supply.

The production of each HBM DRAM wafer necessitates 2 to 3 times more wafers than the standard DDR5 PC/Server DRAM, which significantly affects the overall supply, as per Mosesmann. So, even if Micron were to ship zero HBM next fiscal year, there would be a significant upside to his up 35% year-on-year sales growth just on the ASP upside.

Mosesmann expects revenue and adjusted EPS of $6.60 billion and $0.44 for the third quarter, below the consensus estimate of $6.66 billion and $0.48 but aligning with the updated guidance.

For the fourth quarter, the analyst’s sales and adjusted EPS estimates stand at $7.25 billion and $0.71, respectively. These figures are lower than the consensus estimates of $7.57 billion and $1.02.

Mosesmann’s fiscal 2024 sales estimate is $24.4 billion, and his adjusted EPS estimate is $0.72, lower than consensus estimates of $24.8 billion and $0.98.

For fiscal 2025, the analyst modeled sales and adjusted EPS of $33.0 billion and $12.00, respectively, lower than consensus estimates of $37.2 billion in revenue but higher than its adjusted EPS of $9.01.

Price Action: MU shares traded higher by 0.42% at $139.59 at the last check on Tuesday.

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