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.
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