UPDATE—This article has been updated to reflect additional information and more recent share price values.
Key Takeaways
- Micron Technology is set to release its third-quarter earnings report for the 2024 fiscal year after the bell on Wednesday.
- The company is expected to report a profit for the quarter, compared to a loss in the year-ago period as revenue grows, according to analyst estimates compiled by Visible Alpha.
- Investors will likely be watching for strong guidance driven by exposure to artificial intelligence (AI) chips.
- Micron could also provide insights on how its ties to Nvidia could help the company.
Micron Technology(MU) is set to report its third-quarter earnings for the 2024fiscal yearafter the bell on Wednesday,with investors likely watching for updates on how it stands to gain from growing demand forartificial intelligence (AI) and its partnership with AI darling Nvidia (NVDA).
Analysts project Micron's revenue to come in at $6.7 billion for the third quarter of fiscal 2024, up from the previous quarter and year-ago period, according to estimates compiled by Visible Alpha.
Net income is expected to be $399.39 million, compared to a loss of $1.9 billion in the fiscal third quarter of 2023. Dilutedearnings per share (EPS)could come in at 30 cents, up from a loss of $1.73 per share in the same period a year earlier.
| Analyst Estimates for Q3 FY 2024 | Q2 FY 2024 | Q3 FY 2023 | |
| Revenue | $6.7 billion | $5.82 billion | $3.75 billion |
| Diluted Earnings Per Share | 30 cents | 71 cents | ($1.73) |
| Net Income | $399.39 million | $793 million | ($1.9 billion) |
Key Metric: Strong Guidance on AI Exposure
Analysts at J.P. Morgan and Citi indicated they expect Micron to announce stronger-than-expected guidance for the fourth quarter, which could wow investors and drive the stock higher.
J.P. Morgan analysts said they expect "Aug-Qtr EPS will be guided higher versus consensus expectations." The analysts added they anticipate Micron will reaffirm its view that DRAM (Dynamic Random-Access Memory) and NAND storage technology pricing will increase through 2024 into 2025 as strong high-bandwidth memory (HBM) bit shipment and pricing visibility start to extend into 2026.
Citi analysts said they "expect the company to post results and guidance above Consensus given the DRAM upturn and Micron’s increasing AI memory exposure," projecting fourth-quarter revenue guidance to be $8 billion. The analysts also lifted their price target for the "top pick" stock to $175 from $150.
Business Spotlight: Nvidia Partnership
Micron is notably a partner of AI chipmaker Nvidia, providing the company with memory solutions for its AI chips.
The company produces high-bandwidth memory chips used in Nvidia’s AI graphic processing units (GPUs) which positions Micron to share in Nvidia's gains.
J.P. Morgan said that Micron's strong HBM ramp into Nvidia GPUs contributed to their expectations of strong guidance.
CFRA analysts said they “think HBM may represent over 20% of MU's DRAM revenue in CY 25 (currently single-digits), as it expands customer offerings (e.g., from H200 to Blackwell to Rubin) that require greater memory/bandwidth needs.”
The analysts added “this should drive wider gross margins (potentially +50% by end-CY 25 vs. 20% in Feb-Q) and multiple expansion as MU's revenue shifts toward higher value offerings.”
Micron shares have gained more than 65% since the start of the year, at $141.32 as of noon ET Wednesday ahead of the company's earnings report after the bell.
Article Sources
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Micron Technology. "Micron Technology to Report Fiscal Third Quarter Results on June 26, 2024."
J.P. Morgan. "Micron Technology Expect EPS Estimates To Move Higher; Still Early Stages Of Cyclical Recovery/Positive EPS Revisions; HBM Fastest Growing Memory Application In History Of Industry; Reit OW."
Citi. "Micron Technology Inc (MU.O)|Buy Earnings Preview – Expect Upside Given DRAM Upturn and Increasing AI Exposure. Raising PT to $175, Reit. Buy. Still Top Pick."
CFRA. “CFRA Maintains Buy Opinion on Shares of Micron Technology, Inc. [MU].”
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