Micron Earnings Outlook Brightens Amid AI Infrastructure Boom

Micron Technology (NASDAQ: MU) is set to report its earnings on September 30, and investors are wondering whether they should buy the stock beforehand. The company's performance is expected to be strong, with Wall Street anticipating $50.8 billion in revenue and an EPS of around $31.35 for the fiscal fourth quarter.

This represents a significant increase from last year's Q4 figures, with revenue growth of 350% and EPS nearly 11 times higher. Micron's own guidance is within comparable ranges to Wall Street expectations, indicating that the memory supercycle remains hot.

Several major companies, including Amazon, Tesla, and Nvidia, have recently increased their capital expenditure budgets for memory prices, which bodes well for Micron. In fact, Amazon specifically highlighted memory prices as a reason for its increased budget, while Elon Musk thanked Micron during Tesla's earnings call.

Instead of trying to time the market by buying shares just before the earnings report, smart investors are advised to build a position through dollar-cost averaging over a long-term horizon. This approach allows them to benefit from Micron's continued growth and avoid potential pitfalls such as guidance being light or missing expectations entirely.