Micron earnings: What to expect

Micron Technology's (MU) stock is trading higher as investors await the company's quarterly earnings report, scheduled for release after the market closes on Wednesday. The surge in interest is largely driven by the growing artificial intelligence (AI) sector and increasing demand for memory solutions — with Wall Street analysts projecting Micron to report revenue of $6.7 billion for the quarter.

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This post was written by Angel Smith

Video transcript

Take a look at some trending tickers that we're watching this Wednesday morning, taking a look at shares of Myron up about 7/10 of a percent ahead of the company's earnings report that is expected to come after the close today.

Expectations for the company are high, with investors looking for proof that the A I hype is paying off for the company now.

This comes after shares of my are already up about 65% this year.

Just to put those expectations into context.

The stock has been gaining ahead of this report, and just to run through some expectations from the street $6.7 billion in revenues expected for this quarter.

That's gonna be an 80% jump from a year ago, and that is gonna be driven primarily by pricing power.

We've been seeing a recovery in the demand for P CS for smartphones, and the cyclical nature of that is getting a little bit more attention from Wall Street because it's a little bit easier to anticipate than what we might be able to expect from the a IR Shana.

We know the PC and smartphone demand structure a little bit more clearly so seeing a return to that kind of cyclical demand is a positive catalyst for this stock.

Yes, I think the main focus here for investors is going to be if we see any shift in terms of that demand, when it comes to the supply side of things, whether or not they are able to meet that demand and what exactly that demand more specific looks like.

And then what?

We can suss out from that in terms of what that then tells us about the overall health and strength here of the chip sector.

Because, like we were just talking to Stuart Kreiser about earlier in the show and he's been following it, as well as many strategists out there in the street, just more broad based.

The out performance that we had seen of many of these names and interests of many of these, uh, investors in the chip makers almost across the board here over the last several months.

And and that has started to shift just a bit.

But I think when you take a look at a name like Miron, the out performance of the stock relative, obviously to the SNP.

But even relative to its peers within the space.

It's up 70% so far this year.

So when you take that into account with, it is largely viewed as a big beneficiary.

Obviously of the A. I trade of a I adoption and exactly the role it is it is going to play in that story going forward, and we've seen that name swept up with many others that are on the screen right now when you're taking a look at NVIDIA and a Broadcom.

So again, what exactly?

This signals about the overall health of the industry and demand wise, I think, is really going to be the focus there of a micro after the belt today.