Micron Q4 Earnings: Will the semiconductor giant beat estimates on rising demand for AI chips?

Semiconductor company Micron Technology (NASDAQ:MU) is expected to announce its quarterly earnings on September 25, as investors eagerly anticipate growth from the company due to rising demand for artificial intelligence memory chips to power smartphones, PCs, and data centers.

Despite certain macroeconomic challenges such as global semiconductor shortages and geopolitical volatility, Micron stock has been resilient due to an uptrend in the memory chip market.

The consensus EPS Estimate is $1.11 (+203.7% Y/Y) and the consensus Revenue Estimate is $7.64B (+90.5% Y/Y).

SA Analyst Dair Sansyzbayev believes Micron’s financial performance is improving, with strong liquidity, positive earnings surprises, and promising new product developments.

However, Sansyzbayev added that high inventory levels are a risk that might weigh on profitability metrics, which is a negative catalyst for investors.

Noah’s Arc Capital Management, on the other hand, believes that despite strong AI demand, Micron’s financial pressures and Nvidia’s delays create uncertainty, adding, that near-term risks and cyclical industry concerns remain.

Micron shares tumbled 6.5% in extended-hours trading last quarter after the memory chipmaker issued guidance that was in-line with estimates, which overshadowed a stronger-than-expected third-quarter earnings.

For the fourth quarter, Micron said it expects to earn between $1 and $1.16 per share on an adjusted basis, with revenue expected to be $7.6B, plus or minus $200M.

Over the last 2 years, MU has beaten EPS estimates 75% of the time and has beaten revenue estimates 63% of the time.