Micron reports earnings with consensus expecting ~1,000% profit growth, driven by AI-fueled HBM demand that analysts say is flowing nearly straight to the bottom line. The setup pits a structurally rerated memory cycle against a stock already pricing in a lot of good news ahead of the print.
With gross margins at 39.8% and HBM supply still constrained by CoW packaging capacity, a beat-and-raise print could push MU toward sell-side price targets that cluster meaningfully above current levels, amplified by growing S&P 500 index weight pulling in passive flows.
MU's FY2025 revenue already reflects a near-50% YoY surge and $7.59 EPS, meaning consensus expectations are exceptionally elevated — any miss on HBM unit volumes, pricing, or FY2026 guidance could trigger a sharp de-rating since the stock is not cheap on normalized (non-AI) memory earnings.