Micron Technology Q3 Earnings Preview: AI-powered memory surge expected to drive growth

Micron Technology (NASDAQ:MU) is scheduled to announce Q3 earnings results on Wednesday, June 25th, after market close.

Wall Street, on average, expects the semiconductors company to post a quarterly EPS of $1.61 on revenue of $8.85B. Micron said it expects adjusted earnings to be between $1.47 and $1.67 per share, with sales to be between $8.6B and $9B.

In the second quarter, the memory maker reported results that topped expectations amid strong demand for memory, due in part to artificial intelligence.

Recently, Wedbush analysts said that the shifting dynamics in the calendar second quarter, suggests that mix and average selling prices likely trended better than Micron’s fiscal third quarter guidance had anticipated.

“Micron’s technology leadership, especially in HBM4 and Processing-in-Memory, gives it a competitive edge and strong growth prospects in lucrative AI memory markets,” pointed out a recent Seeking Alpha analysis.

Most recently, Micron Technology (NASDAQ:MU) expanded its fabrication and research and development plans in the U.S. to $200B to meet growing market demand and eventually produce 40% of its DRAM domestically.

Over the last 2 years, MU has beaten EPS estimates 88% of the time and has beaten revenue estimates 88% of the time.

Over the last 3 months, EPS estimates have seen 7 upward revisions and 0 downward. Revenue estimates have seen 5 upward revisions and 1 downward.

Since the start of the year, MU shares have risen nearly 49%, compared to the 2.4% rise in the broader S&P 500 index (SP500).

MU shares were up 3% on Tuesday.