Micron Q3 Earnings Preview: AI In Focus, Analyst Says 'Only Positive News ... For Some Time To Come'

Semiconductor company Micron Technology MU is set to report third-quarter financial results after market close Wednesday.

Here are the earnings estimates, what analysts are saying and key items 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 be an improvement from $3.75 billion reported in last year's third quarter. Micron has beaten analysts' revenue estimates in four straight quarters and seven of the last 10 quarters overall.

Analysts expect Micron to report third-quarter earnings per share of 49 cents, compared to a loss of $1.43 in last year's third quarter. The company has beaten earnings estimates in four straight quarters and eight of the last 10 quarters.

Company guidance calls for third-quarter revenue to be $6.6 billion, plus of minus $200 million and earnings per share to be 38 cents to 52 cents according to estimates given during the second quarter results.

Related Link: Silvaco Group Inks Deals With Micron, Key Japanese Customer: Earnings Were ‘2x Our Forecast,’ Analysts Say

What Analysts Are Saying: Micron has been getting lots of analyst updates and price target changes ahead of the third quarter earnings report.

Higher average selling prices for the third quarter could be a key item to watch according to Wedbush analyst Matt Bryson.

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

Bryson expects Micron to beat estimates from analysts and raise guidance. The analyst saw Micron's average selling prices, revenue, margins and earnings per share all trending higher.

"We expect only positive news for MU's financials for some time to come, and expect the stock will continue to lift until we see a change in industry investment plans," Bryson said.

A third-quarter beat-and-raise is also expected by Rosenblatt analyst Hans Mosesmann.

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

Mosesmann sees increasing demand for artificial intelligence applications continuing in Micron's third quarter and several positive trends continuing into 2026 and 2027.  

Here are other analyst ratings on Micron and their price targets:

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

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

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

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

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

Key Items to Watch: Micron is among the companies benefitting from growth in the artificial intelligence sector.

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

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

A recent Bloomberg report said Micron is facing construction delays for a factory site in New York. The delays have pushed the groundbreaking into 2025. The project could help Micron increase domestic chip production.

Micron could 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 versus a 52-week trading range of $60.50 to $157.54. Micron stock is up 113% over the last year and up over 60% year-to-date in 2024.

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