Micron Earnings Beat Expected as AI Memory Demand Soars

Micron is releasing fiscal Q2 2024 earnings on March 20th and is expected to beat consensus estimates due to strong DRAM pricing and sales of high-margin HBM memory.

Micron has a partnership with Nvidia to provide HBM memory for AI systems, positioning it well to benefit from the $1 trillion AI server retooling market.

Analyst Christopher Danely expects EPS of ($0.28) vs ($0.42) consensus and revenue of $5.3B, in line with estimates. He sees higher gross margins from better DRAM pricing and HBM revenue.

Danely believes Micron's multiple should expand given its AI exposure and peers' expansions, raising his price target to a Street-high of $150.

Nearly all analysts rate Micron a Buy with an average price target of $104.76, representing 12-month returns of ~12%.