Micron Reports Earnings Soon. Watch for This Surprise.

Micron is set to report fiscal fourth-quarter earnings on Sept. 23 after the market close. (Ifeelstock/Dreamstime)

Key Points

About This Summary

• Micron Technology is expected to report fiscal fourth-quarter earnings later this month.
• Analysts anticipate Micron’s first-quarter outlook will exceed expectations due to increased sales and pricing.
• Citi Research reiterates a Buy rating on Micron shares, raising its price target to $175 from $150.

Micron Technology is set to report fiscal fourth-quarter earnings later this month, and analysts believe the chip maker could issue guidance that tops even the loftiest expectations on Wall Street.

While earnings and revenue will likely meet forecasts, Micron’s first-quarter outlook could come in well above consensus as a result of higher sales and pricing for DRAM and NAND flash memory, Citi Research analysts wrote Thursday.

“We believe the continued memory upturn is being driven by limited production and better than expected demand, particularly from the data center end market,” the Citi team added, noting that this market comprises more than half of Micron’s revenue.

The firm reiterated a Buy rating on Micron shares and boosted its price target to $175 from $150 “due to DRAM market upturn and the company’s AI exposure.” Analysts noted that Citi’s fiscal 2026 earnings estimate of $15.02 a share was 26% above consensus.

The recent price target hike makes Citi one of the biggest optimists on Wall Street, behind Baird, Rosenblatt Securities, and J.P. Morgan, all of whom have price targets north of $185 on Micron stock. However, the firm is far from being the only bull: of 42 analysts polled by FactSet, 36 rate the stock at Buy or the equivalent.

Micron’s high bandwidth memory chips are increasingly used in demanding artificial-intelligence tasks. The company posted record revenue in the fiscal third quarter, partly driven by its exposure to the AI boom.

Last month, the company announced that it was raising its guidance for the current quarter, citing “improved pricing, particularly in DRAM, and strong execution.” Analysts surveyed by FactSet are looking for fourth-quarter adjusted earnings of $2.53 a share on revenue of $11.1 billion.

Shares climbed 7.7% to $150.74 on Thursday, putting them on pace for the highest close since June 18, 2024, according to Dow Jones Market Data. Peers Applied Materials and Advanced Micro Devices were up 3.6% and down 2.2%, respectively.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com