Wall Street expected a beat-and-raise quarter from Micron, which indeed gave an outlook far stronger than what analysts were expecting as AI drives strong demand for memory chips.
Micron (MU) reports earnings after the close on Tuesday, and Paul McCarthy expects a beat and raise from the company. The stock has doubled since the start of 2025, helped by raised guidance Micron released in August.
Micron is still a Strong Buy ahead of the upcoming earnings release despite already massive 80%+ stock rally since March. Wall Street analysts have raised price targets and EPS estimates for MU, citing strong data center demand and favorable supply/demand dynamics. MU's consistent earnings beats, expanding profitability, and attractive forward valuation ratios highlight significant upside potential.
Micron Technology Inc (NASDAQ:MU) saw its price target raised by Wedbush analysts to $200 from $165, who see recent developments in the memory market representing a major inflection point, calling it “the week that changed the memory world.” Wedbush noted that demand trends across key memory and storage products have shifted significantly over the past several weeks.
Micron Technology (NASDAQ: MU) is anticipated to announce its earnings on Tuesday, September 23, 2025. The earnings for this quarter are estimated to reach approximately $2.85 per share, rising from $1.18 per share in the same quarter last year, according to consensus estimates.
Increasing AI-inference workloads are creating a favorable environment for Micron, according to Citi analysts.
Micron Technology (MU) stock is on track for its third-straight daily loss, but still sports a 40.3% year-to-date lead. The security has struggled to conquer its June 26, 52-week high of $129.85, with an early August attempt coming just shy of that peak, though the $110 level stepped in to contain its subsequent pullback.
After a period of unprofitability, Micron Technology has delivered strong margins and growth as it supplies the AI industry. The business has a limited moat, as many competitors exist; past cycles indicate it is a commoditized industry. I argue that MU's valuation seems attractive, despite that.
Micron Technology, Inc. is a key player in AI infrastructure, with memory demand poised to break historic business cycles and drive long-term growth. AI-driven demand is boosting DRAM/NAND markets, supporting higher margins and revenue growth, especially in data center/server segments through 2027. Despite strong fundamentals, Micron trades at low valuations, 6.1x P/CE or a 0.4x PEG, offering significant upside if the market recognizes its pivotal AI role.
Micron Technology, Inc. remains fundamentally strong, benefiting from AI-driven demand and robust financial performance, as highlighted in my previous bullish call. Micron is currently valued as if it lacks both soaring EPS and significant AI exposure, with its forward P/E ratio for FY2026 nearly identical to that of Verizon. The company recently delivered a notable across-the-board upgrade to its FQ4 guidance, reinforcing its fundamental strength and AI-driven momentum.
Here is how Micron (MU) and Bel Fuse (BELFB) have performed compared to their sector so far this year.
In the most recent trading session, Micron (MU) closed at $116.47, indicating a -1.03% shift from the previous trading day.