"The primary reason behind analyst optimism ahead of today's earnings is Micron's exposure to high-bandwidth memory (HBM), essential for artificial intelligence (AI) accelerators. The company has sold out its HBM capacity for 2025 and much of 2026, with commitments from major customers securing visibility. Analysts say that HBM3E production is ramping up as planned, contributing to higher margins due to the premium pricing it commands compared to standard DRAM."
"The overall DRAM and NAND markets also show improving conditions, with spot prices rising significantly in recent months and contract pricing following suit. Industry supply discipline has helped tighten availability, supporting revenue growth across data center, mobile, and other segments. Micron's fiscal 2025 results underscored this shift, with annual revenue reaching $37.4 billion, up nearly 49% year-over-year, and data center sales now representing more than half of total revenue."
Micron is releasing fiscal first-quarter earnings after the market close following a 176% share surge in 2025 that made it the best-performing Nasdaq 100 stock. Consensus estimates forecast $12.9 billion in revenue, a 48% year-over-year increase, and adjusted earnings of $3.94 per share, while several analysts raised price targets to $300 or higher. Strong demand for high-bandwidth memory (HBM), sold out for 2025 and much of 2026, and a planned HBM3E ramp support premium pricing and higher margins. Improving DRAM and NAND pricing and industry supply discipline boosted fiscal 2025 revenue to $37.4 billion, with data center sales now over half of revenue.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]