Micron Stock In Spotlight Amid Valuation Concerns Ahead Of Q3 Results — Retail Stays Optimistic

Memory chipmaker Micron Technology, Inc. (MU) will release its quarterly results after the market closes on Wednesday. 

Ahead of the earnings release, Micron stock was up 0.57% in Wednesday’s early premarket session.

The results assume importance as the company’s report will likely shed light on the impact of the fluid macro and geopolitical environment on the fundamentals of technology companies, especially those leveraged to artificial intelligence (AI) technology.

The Finchat-compiled consensus expects Micron to report adjusted earnings per share (EPS) of $1.59 and revenue of $8.83 billion for the third quarter of fiscal year 2025.

The guidance issued in late March calls for adjusted earnings per share of $1.57, plus or minus $0.10, and revenue of $8.80 billion, +/- $200 million. 

Micron has a strong presence in China, with multiple offices and a manufacturing facility. A Wall Street Journal report last week said the U.S. plans to crack down on allied chip plans in the U.S. 

Amid the U.S. China chip curbs, the company announced earlier this month that it would boost its U.S. investments to about $150 billion in domestic memory manufacturing and $50 billion in R&D, creating an estimated 90,000 direct and indirect jobs.

The company also said it plans to invest an additional $30 billion beyond the previous plan to further long-term growth in high bandwidth memory (HBM), which is essential to the AI market.  

On Monday, Cantor Fitzgerald analyst C.J. Muse raised his Micron price target to $145 from $130 and maintained an ‘Overweight’ rating. The analyst said he expects the company to report a solid ‘beat-and-raise’ quarter, thanks to strong data center demand and a recovering consumer business. Muse also expects Micron to issue a bullish commentary on the DRAM market.

On Stocktwits, retail sentiment toward Micron stock was ‘extremely bullish’ (73/100) by early Wednesday, improving from the ‘bullish’ mood a day ago. The message volume stayed ‘high.’

A bullish watcher said the stock setup looks good currently for the first time in a very long time, adding that “this one has some nice momentum behind it and is in a very strong uptrend for the first time in over a year.”

Another user said Micron and ASML (ASML) are their favorites, and they expect them to benefit from the AI boom.

Micron stock has run up by over 50% this year. The Koyfin-compiled consensus analysts’ price target for the stock is $126.35, implying modest downside potential.

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