Connect with us

Hi, what are you looking for?

Economy

Micron stock price forecast: will it rise or fall after earnings?

Micron stock price has been boring since July last year. MU has remained between the key support and resistance levels at $114.40 and $84.58, respectively. It remains about 35% below the highest level in 2024. So, what is the MU stock price forecast ahead of its quarterly earnings?

Micron stock price waits for earnings

Micron Technology and other semiconductor companies have done well in the past few years, helped by increased corporate spending because of AI. Its annual revenue jumped from $15 billion in 2022 to over $25 billion in the last financial year. The trailing twelve months (TTM) revenue jumped to over $29 billion.

The last quarterly results showed that Micron’s revenue surged to $8.7 billion in Q3, a big increase from the $4.73 billion it shipped in the same quarter a year earlier. This revenue growth happened because of its strong data center business whose revenue moved to 50% of its total figure for the first time. 

Micron became more profitable as the net loss jumped to over $1.87 billion during the quarter. 

On the positive side, the company will likely continue doing well this year as companies like Microsoft, xAI, and Amazon are keen on accelerating their AI spending. Estimates are that the top companies will spend over $320 billion this year. 

The challenge, however, is that there are signs that the AI bubble may be starting to burst. This explains why many AI stocks like NVIDIA, AMD, SoundHound, and C3.ai have crashed this year. 

Further, there are concerns that the ongoing trade war between the US and China will impact Micron’s results. Historically, Micron generated about 25% of its sales from Chinese companies. This has changed after the company was forced to end some of its trading relationships with Chinese companies.

Analysts see more MU earnings growth

Wall Street analysts expect the upcoming results to show that Micron’s business continued doing well in the last quarter. 

The average estimate is that Micron’s revenue rose by 36% in the second quarter of financial year 2025 to $7.92 billion. 

They also see the forward guidance for the next quarter being 21.73% to $8.29 billion. For the year, Micron’s revenue is expected to be almost $35 billion, up by almost 40% to $35 billion. This growth will slow to 28% to $44.7 billion. 

A potential catalyst for the Micron stock price is that the consumer business, which has weakened in the past few years may start to grow again this year. Reports by companies like IDC and Gartner estimate that the PC industry will see a modest single-digit growth trajectory this year. 

The other catalyst is that Micron has become an undervalued company, considering that its business is still growing. It has a non-GAAP forward P/E ratio of 14.7, much lower than the sector median of 21. The forward GAAP multiple of 16.4 is lower than the median of 26.

Micron stock price analysis

MU stock chart by TradingView

The daily chart shows that the MU share price has remained in a tight range in the past few months. It has remained between the support and resistance levels at $85 and $114.4 since July last year. 

Micron stock is consolidating at the 50-day and 100-day Exponential Moving Averages (EMA). The two lines of the MACD indicators have pointed upwards. 

Therefore, the Micron stock price will likely move in either direction after its earnings. The key levels to watch will be at $85 and $115. The odds are high that the latter will prevail because the average Micron stock price forecast is $129. 

The post Micron stock price forecast: will it rise or fall after earnings? appeared first on Invezz

You May Also Like

Latest News

LONDON (Reuters) – Demand for London’s most expensive homes cooled last month as high earners worried about the possibility of tax increases by Britain’s...

Latest News

Investing.com — The idea of a U.S. Sovereign Wealth Fund has been gaining attention, with both former President Donald Trump and current President Joe...

Latest News

(Reuters) – Bank of Canada Governor Tiff Macklem opened the door to increasing the pace of interest rate cuts, the Financial Times reported on...

Editor's Pick

Venezuela, a country blessed with natural wealth and stunning landscapes, faces a tourism paradox. Despite its abundant resources, the nation struggles to attract international...

Disclaimer: Bullsmarketdominators.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


Copyright © 2024 Bullsmarketdominators.com