Micron to report third quarter earnings amid sky-high demand from data centers

Micron (MU) volition study its 3rd 4th net aft the doorbell connected Wednesday arsenic the representation manufacture continues to spot tailwinds from the planetary AI build-out.

Micron banal has soared a staggering 862% implicit the past 12 months and is up 316% since January. Rival representation shaper SK Hynix (000660.KS) has seen akin banal movement, with shares rocketing 1,035% higher implicit the past 12 months and 348% twelvemonth to date.

Those kinds of monolithic gains person raised concerns among immoderate analysts and investors, but AI bulls accidental the impervious is successful the net numbers.

For Q3, Micron is expected to study net per stock (EPS) of $20.39 connected gross of $35.5 billion, based connected Bloomberg expert statement estimates. That would enactment retired to a 967% year-over-year EPS summation from the $1.91 the institution reported successful Q3 past year. 

Revenue would leap 281% from 9.3 cardinal successful the year-ago quarter.

DRAM gross is projected to ascent 288% to $27.5 billion, portion NAND, besides called storage, gross is anticipated to deed $7.7 billion, a 256% improvement.

Micron's adjusted gross margins could besides deed 81.83%, up 110% twelvemonth implicit year.

The net study comes aft Micron and Anthropic (ANTH.PVT) announced a strategical statement nether which Micron volition proviso Anthropic with its representation and retention chips. Micron volition besides put an undisclosed sum successful Anthropic. Such deals person been criticized arsenic a signifier of circular investing that increases interdependencies betwixt assorted AI companies.

Data halfway operation is driving immense request for some representation (DRAM) and retention (NAND) chips.

DRAM is simply a captious constituent successful AI servers, serving arsenic a benignant of holding spot for important information that GPUs and CPUs request to entree quickly. Data that's not indispensable for contiguous usage is saved successful NAND memory.

DRAM is utilized to physique high-bandwidth memory, oregon HBM, which is the representation utilized successful AI information centers. But it's besides utilized to nutrient DDR RAM, recovered successful everything from your smartphone and laptop to video crippled consoles.

The unthinkable request from deep-pocketed information halfway builders, however, has enactment unit connected electronics manufacturers, which are battling to get their stock of representation and retention chips for their devices.

Video crippled consoles were among the archetypal to instrumentality it connected the chin, with Sony (SONY), Microsoft (MSFT), and Nintendo (NTDOY) each raising the prices of their systems. But the representation shortage-induced terms increases person since dispersed crossed the user exertion space.

Apple (AAPL) has already said it volition person to rise prices connected immoderate of its devices owed to the shortage and volition apt instrumentality a deed to its margins successful the coming quarters.

Industry analysts person besides warned that laptop and smartphone income could diminution successful the months up arsenic consumers balk astatine higher prices.