Will Micron Stock (MU) Soar Higher on Q3 Earnings?

Micron Technology (MU) stock has rallied 45% year-to-date, as the provider of memory and storage chips is enjoying solid demand for its offerings that are required to support AI (artificial intelligence) workloads. The company is scheduled to announce its results for the third quarter of Fiscal 2025 after the market closes on June 25. Ahead of the Q3 earnings, Wall Street is bullish on Micron’s prospects and expects further upside in the stock, backed by AI-led tailwinds. Notably, the Q3 FY25 results could reinforce Micron’s role as a top AI infrastructure stock.

Meanwhile, analysts expect Micron to report EPS (earnings per share) of $1.59 on revenue of $8.84 billion. These estimates reflect year-over-year growth of 156% and 30% in Micron’s Q3 FY25 earnings and revenue, respectively.

The solid growth expectations are backed by strength in Micron’s data center segment and reflect demand for its HBM (high bandwidth memory) offerings. Notably, Micron’s HBM3E technology is used in AI accelerators of semiconductor giants Nvidia (NVDA) and Advanced Micro Devices (AMD) to enhance performance and efficiency for AI workloads. Management is confident about the demand for Micron’s AI products across DRAM and NAND solutions.

Analysts’ Views Ahead of Micron’s Upcoming Q3 Earnings

Heading into Q3 results, Citi analyst Christopher Danely increased the price target for Micron Technology stock to $130 from $110 and reiterated a Buy rating. The 5-star analyst expects Micron to report market-beating Q3 FY25 results and provide guidance above the consensus estimates, driven by higher-than-expected DRAM pricing. Notably, DRAM pricing is estimated to increase by at least 5% quarter-over-quarter.

Furthermore, Stifel analyst Brian Chin reiterated a Buy rating on Micron stock with a price target of $130. The 5-star analyst sees potential upside to both his and the Street’s Q3 FY25 estimates. Chin thinks that bit shipments for the May-ending quarter were likely boosted by some pull-forward of PC and smartphone production (and memory chips), as these devices remain exempt from higher reciprocal tariffs.

Chin contended that while there are concerns about what demand has been pulled forward, recent checks indicate that OEM (original equipment manufacturer) inventory remains “reasonable,” broader DRAM demand is strong, and pricing is expected to increase into September. The analyst expects Micron’s Q4 FY25 outlook to surpass his expectations. Given the broader strength in the average selling price (ASP), Chin expects Micron to issue upbeat gross margin guidance for Q4 FY25.

Is MU a Good Stock to Buy?

Overall, most analysts covering Micron stock are bullish on its growth potential, driven by the demand for its HBM technology. With 17 Buys and three Holds, Wall Street has a Strong Buy consensus rating on Micron Technology Stock. The average MU stock price target of $124.89 indicates 2.5% upside potential from current levels.

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