Micron Prepares for Elevated Expectations Ahead of Earnings
Top Goldman Sachs analyst James Schneider has set high expectations for Micron's (NASDAQ:MU) fourth-quarter earnings report, which is scheduled to be released on September 30.
The AI memory chip giant has already seen its stock rise by over 250% this year and had a record fiscal third quarter with revenue reaching $41.46 billion, more than four times the year-ago level.
However, Schneider notes that investor expectations remain elevated, driven by ongoing DRAM price momentum, but cautions that longer-term supply considerations are also important, particularly as Chinese manufacturers add capacity and Micron works to secure customer commitments extending beyond current purchasing cycles.
Schneider's estimates sit above Wall Street projections, with the analyst forecasting quarterly revenue of $51.9 billion, an 87.3% gross margin, and EPS of $32.54, compared with consensus figures of $50.5 billion, 87%, and $31.40, respectively.
Despite his optimistic views on Micron's near-term prospects, Schneider has assigned a Neutral rating to the stock and a $1,100 price target, which implies about 8% upside from current levels.