Since July of last year, the Micron share price has been monotonous. MU is still trading between key resistance and support levels of $114.40, and at $84.58. The stock price is still about 35% lower than its highest level of 2024. What is the MU share price expected to be ahead of quarterly earnings?
Stock price of Micron is waiting for earnings
AI has led to an increase in corporate spending, which Micron Technology as well as other semiconductor manufacturers have benefited from. The company’s revenue increased from $15 billion to $25 billion. Over $29 billion was added to the revenue for the trailing 12 months.
Micron reported a revenue of $8.7 Billion in the third quarter, a huge increase over the $4.73 Billion it had shipped a year ago. Micron’s strong data centre business, whose revenues now account for 50% of the total revenue of the company, is responsible for this revenue increase.
Micron’s profitability increased as its net loss rose to more than $1.87 billion in the third quarter.
Positively, Microsoft, xAI and Amazon will continue to invest in AI, which is likely to boost the performance of the company this year. The top companies are expected to spend more than $320 billion in 2018.
There are some signs, though, that suggest that the AI bubble is about to pop. It is for this reason that many AI stocks such as NVIDIA AMD SoundHound and C3.ai are down in value.
There are also concerns about the impact of the trade war that is currently taking place between China and the US on Micron’s performance. In the past, Micron received about 25 percent of its revenue from Chinese firms. The company had to terminate some trading relations with Chinese firms.
Analysts expect MU earnings to grow more
Wall Street expects the results of Micron to continue showing that the business did well during the previous quarter.
Micron is expected to grow its revenue by an average of 36% during the second quarter 2025, from $7.92 billion.
The company also expects the quarter to be up by 21.73%, or $8.29 billion. Micron expects to reach almost $35 billion in revenue for the entire year. This is an increase of almost 40%. The growth rate will be 28%, or $44.7 billion.
The consumer business may be a catalyst to the Micron share price this year. It has been a weak spot in recent years. IDC and Gartner report that this year the PC market will grow by a single digit percentage.
Micron is also undervalued, given that the company’s business continues to grow. The non-GAAP P/E forward ratio is 14.7. This is much lower than sector median 21. The GAAP forward multiple is 16.4, which is less than the sector median of $26.
Stock price Analysis of Micron
TradingView’s MU Stock Chart
On the daily chart, the MU shares have stayed in a narrow range over the last few months. Since July of last year, it has been between $85 and $101.4.
The Micron Stock is consolidating around the Exponential Moving Averaging (EMA) of 50 and 100 days. Both lines of MACD have been pointing upwards.
The Micron share price is likely to move either way after the earnings. Watch out for $85 and $115. It is likely that Micron’s stock will rise to $115, as the forecast average for the Micron share price is $129.
The Micron Stock Price Forecast: Will it Rise or Fall after Earnings? This post may be updated as new information unfolds
