{"id":2930,"date":"2026-06-22T16:43:45","date_gmt":"2026-06-22T16:43:45","guid":{"rendered":"https:\/\/retrotradingreport.com\/index.php\/2026\/06\/22\/micron-stock-is-beating-the-broader-market-today-what-to-expect-from-earnings\/"},"modified":"2026-06-22T16:43:45","modified_gmt":"2026-06-22T16:43:45","slug":"micron-stock-is-beating-the-broader-market-today-what-to-expect-from-earnings","status":"publish","type":"post","link":"https:\/\/retrotradingreport.com\/index.php\/2026\/06\/22\/micron-stock-is-beating-the-broader-market-today-what-to-expect-from-earnings\/","title":{"rendered":"Micron stock is beating the broader market today: what to expect from earnings"},"content":{"rendered":"
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Micron (MU) shares have had a monster rally heading into the memory chip specialist\u2019s fiscal Q3 earnings<\/a> scheduled for Jun. 24 after market close.<\/p>\n

Consensus is for MU\u2019s revenue to nearly quadruple on a year-over-year basis in the third quarter to about $35 billion on a 10x increase in per-share earnings (EPS) to $19.72.<\/p>\n

Simply put, Wall Street is anticipating an absolute blowout quarter, driven entirely by the explosive global buildout of artificial intelligence (AI) infrastructure.<\/p>\n

Year-to-date, Micron stock is currently up some 250%, but Bernstein analyst Mark Li believes the rally isn\u2019t out of juice just yet.<\/p>\n

At the time of writing on Monday, the stock is up around 5%. The rally comes even as the broader tech sector is struggling at the bourses.<\/p>\n

Shares of Alphabet fell around 6% amid concerns over high-profile<\/a> AI talent departures, while Amazon and Meta Platforms lost 4% and 3%, respectively. <\/p>\n

Why Bernstein remains bullish on Micron stock<\/h2>\n

On Monday, Li reiterated his \u201cOutperform\u201d rating on MU shares and more than doubled his price target to $1,300, indicating potential upside of approximately 10% from current levels.<\/p>\n

Li\u2019s ultra-bullish thesis is based primarily on the severe, structural shortage gripping the dynamic random-access memory (DRAM) market.<\/p>\n

Historically, the semiconductor memory sector has been notoriously cyclical, plagued by frequent gluts and subsequent price collapses. <\/p>\n

However, the Bernstein analyst sees the current supply deficit as fundamentally different, tracking as far more acute and long-lasting than previously modeled.<\/p>\n

Tech giants and data center operators are purchasing advanced memory architectures at an unprecedented pace to backstop high-performance graphics processing units (GPUs).<\/p>\n

Because shifting production capacity to specialized AI memory constraints conventional DRAM output, industry supply is tightening across the board.<\/p>\n

Bernstein projects that this disciplined supply-demand imbalance will sustain immense pricing power for Micron well into calendar year 2027.<\/p>\n

Consequently, standard Wall Street model assumptions are likely underestimating the duration of this upcycle, leaving significant room for consecutive quarters of earnings beats and upward consensus revisions.<\/p>\n

What else could drive MU shares higher<\/h2>\n

The second catalyst fueling Li\u2019s conviction is the huge pricing leverage inherent to high-bandwidth memory (HBM).<\/p>\n

To reflect this structural evolution, the firm notably shifted its valuation framework for Micron from price-to-book (P\/B) to price-to-earnings (P\/E), modeling unprecedented margin thresholds for the chipmaker.<\/p>\n

Bernstein highlights that HBM contract prices must undergo a sharp re-acceleration to completely close the lingering profitability gap with conventional DRAM processing.<\/p>\n

Micron\u2019s HBM capacity for calendar year 2026 is already fully allocated, and early 2027 visibility remains exceptionally strong.<\/p>\n

As premium-priced HBM4 and HBM3E volumes scale up<\/a>, the richer product mix will dramatically expand corporate gross margins, which are already guided near a record-breaking 81% for Q3.<\/p>\n

Bernstein notes that as these favourable contract repricings materialize, they will fuel massive upward adjustments to forward consensus earnings.<\/p>\n

Li projects that Micron\u2019s fiscal 2027 earnings capacity will ultimately land significantly north of Wall Street estimates, fundamentally justifying a much higher valuation multiple for Micron shares.<\/p>\n

The post Micron stock is beating the broader market today: what to expect from earnings<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Micron (MU) shares have had a monster rally heading into the memory chip specialist\u2019s fiscal Q3 earnings scheduled for Jun. 24 after market close.Consensus is for MU\u2019s revenue to nearly quadruple on a year-over-year basis in the third quarter to about $35 billion on a 10x increase in per-share earnings (EPS) to $19.72.Simply put, Wall…<\/p>\n","protected":false},"author":1,"featured_media":2931,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2930","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/2930","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/comments?post=2930"}],"version-history":[{"count":0,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/2930\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media\/2931"}],"wp:attachment":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media?parent=2930"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/categories?post=2930"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/tags?post=2930"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}