Key Takeaways
Micron Expertise is about to launch its third-quarter earnings report for the 2024 fiscal yr after the bell on Wednesday.The corporate is anticipated to report a revenue for the quarter, in comparison with a loss within the year-ago interval as income grows, in keeping with analyst estimates compiled by Seen Alpha.Traders will probably be looking forward to sturdy steering pushed by publicity to synthetic intelligence (AI) chips.Micron may additionally present insights on how its ties to Nvidia may assist the corporate.
Micron Expertise (MU) is about to report its third-quarter earnings for the 2024 fiscal yr after the bell on Wednesday, with traders probably looking forward to updates on the way it stands to achieve from rising demand for synthetic intelligence (AI) and its partnership with AI darling Nvidia (NVDA).
Analysts challenge Micron’s income to come back in at $6.7 billion for the third quarter of fiscal 2024, up from the earlier quarter and year-ago interval, in keeping with estimates compiled by Seen Alpha.
Internet earnings is anticipated to be $399.39 million, in comparison with a lack of $1.9 billion within the fiscal third quarter of 2023. Diluted earnings per share (EPS) may are available in at 30 cents, up from a lack of $1.73 per share in the identical interval a yr earlier.
Analyst Estimates for Q3 FY 2024
Q2 FY 2024
Q3 FY 2023
Income
$6.7 billion
$5.82 billion
$3.75 billion
Diluted Earnings Per Share
30 cents
71 cents
($1.73)
Internet Earnings
$399.39 million
$793 million
($1.9 billion)
Key Metric: Sturdy Steerage on AI Publicity
Analysts at J.P. Morgan and Citi indicated they anticipate Micron to announce stronger-than-expected steering for the fourth quarter, which may wow traders and drive the inventory greater.
J.P. Morgan analysts mentioned they anticipate “Aug-Qtr EPS will likely be guided greater versus consensus expectations.” The analysts added they anticipate Micron will reaffirm its view that DRAM (Dynamic Random-Entry Reminiscence) and NAND storage expertise pricing will improve by means of 2024 into 2025 as sturdy high-bandwidth reminiscence (HBM) bit cargo and pricing visibility begin to lengthen into 2026.
Citi analysts mentioned they “anticipate the corporate to submit outcomes and steering above Consensus given the DRAM upturn and Micron’s growing AI reminiscence publicity,” projecting fourth-quarter income steering to be $8 billion. The analysts additionally lifted their worth goal for the “high decide” inventory to $175 from $150.
Enterprise Highlight: Nvidia Partnership
Micron is notably a accomplice of AI chipmaker Nvidia, offering the corporate with reminiscence options for its AI chips.
The corporate produces high-bandwidth reminiscence chips utilized in Nvidia’s AI graphic processing models (GPUs) which positions Micron to share in Nvidia’s positive aspects.
J.P. Morgan mentioned that Micron’s sturdy HBM ramp into Nvidia GPUs contributed to their expectations of sturdy steering.
Micron shares have gained greater than 62% because the begin of the yr, at $139.01 as of Monday’s shut.