Micron Technology (MU) Q3 Earnings Drop Tomorrow: Will Memory Demand Spark a Surprise?

All eyes on Micron as the memory chip giant preps to unveil Q3 earnings—will AI-driven demand offset sluggish consumer electronics? Analysts brace for volatility.

Key metrics to watch: DRAM pricing trends, data center revenue mix, and inventory levels. Street whispers suggest guidance could make or break the post-report rally.

Meanwhile, Wall Street hedges its bets—because nothing says 'confidence' like a 50/50 split between 'Strong Buy' and 'Wait-And-See' ratings.

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Meanwhile, revenues are expected to increase by 30% from the year-ago quarter to $8.86 billion, according to data from the TipRanks Forecast page. This strong growth outlook is driven by rising demand in Micron’s data center business and its high bandwidth memory (HBM) chips. It’s important to note that Micron has outperformed EPS estimates in eight of the past nine quarters.

Analysts’ Views Ahead of Micron’s Q3 Print

Ahead of the Q3 earnings results, Top-rated analyst Aaron Rakers of Wells Fargo raised his price target on the stock from $130 to $150. He expects the upcoming report to show continued strength in data center and AI-driven demand for DRAM. Similarly, Citi analyst Christopher Danely raised his price target on Micron from $110 to $130 and reaffirmed a Buy rating. The five-star analyst expects Micron to deliver strong Q3 FY25 results, with guidance above Wall Street estimates, driven by better-than-expected DRAM pricing.

For context, DRAM is dynamic memory used in PCs, servers, and many other electronics.

It’s important to highlight that Micron’s Compute and Networking segment is seeing strong momentum, fueled by record sales of data center DRAM and a sharp rise in HBM shipments. According to Main Street Data, Micron’s Compute and Networking segment generated $4.56 billion in revenue in Q2 of fiscal 2025, making up about 56.7% of the company’s total revenue.

Options Traders Anticipate a Large Move

Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings MOVE is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.

Indeed, it currently says that options traders are expecting a 8.55% move in either direction.

Is Micron a Good Buy?

Turning to Wall Street, analysts have a Strong Buy Buy consensus rating on MU stock based on 12 Buys and three Holds assigned in the past three months. Micron’s average price target of $121.67 suggests a modest downside of 0.34% from current levels.