overview
- Micron Technology has achieved historic results due to high demand for high-bandwidth memory chips in AI infrastructure.
- The company’s upcoming third quarter earnings release is highly anticipated, with estimates calling for EPS of approximately $19.72 and revenue of $34.52 billion, representing over 900% year-over-year growth.
- Micron’s pricing power and gross margins have come under scrutiny, with some investment banks setting price targets of $1,500 to $1,600.
- Despite concerns about a potential oversupply in the future, current demand for HBM chips remains strong, fueled by partnerships and deals with major companies such as Nvidia.
Micron Technology (MU) has achieved historic results, driven by massive demand for high-bandwidth memory (HBM) chips in AI infrastructure.
The main reason for the aggressive rise is extreme optimism ahead of Micron. Fiscal third quarter results to be released after market close on Wednesday, June 24, 2026. The consensus forecast is for EPS to be approximately $19.72 About the revenue of $34.52 billion. this This represents more than 900% year-over-year profit growth.
Management has guided the company to near-record gross profit margins. 81%. Wall Street wants to see if Micron’s pricing power is compromised, and some super bullish investment banks (including UBS and Cantor Fitzgerald) have raised their price targets to $1,500 to $1,600.
The options market is currently pricing in approximate prices. 17% implicit movement Go in either direction after printing the proceeds.
Both Micron and rival SK Hynix have reported that their high-bandwidth memory (HBM) production capacity is completely sold out through 2026, and that their next-generation AI accelerators (Blackwell B200) are being hoarded by major companies such as Nvidia.
Market sentiment further increased just before earnings following a surprise partnership/deal with AI lab Anthropic.
Some bears have warned that the massive capex program (Micron expects full-year capex to exceed $25 billion) could eventually lead to a glut in supply in 2027 or 2028, but the current “structural expansion” of agent AI means that demand far exceeds supply for now.
Olumido Adesina
financial market writer
Olumide Adesina is a French-born Nigerian financial writer. He has over 15 years of working experience in investment trading and tracking financial markets.
