Analysis of Wall Street Insights on Micron Ahead of Earnings

Guidance & Expectations

Q2 EPS Guidance: Micron guided for Q2 EPS of $1.43 (±$0.10) with revenue of $7.9B (±$200M).
Analyst Adjustments: Initial analyst expectations were $1.97 EPS and $8.97B revenue, which have fallen to $1.42 EPS and $7.9B revenue.

Reiterated Buy rating with a $150 price target.
Expectations: "Decent results but below consensus" due to consumer mix and NAND underutilization charges.
Positive outlook for DDR5 pricing, up 8% YTD, the largest increase since Q1 2024.

Lowered price target to $130 from $140, maintained Overweight rating.
Adjusted EPS views: $1.42 (down from $1.46) for Q2 and $1.30 (down from $1.63) for Q3.
Focus on normalized inventory levels and HBM/data center momentum.

Lowered price target to $150 from $175, maintained Outperform rating.
Anticipated recovery in the second half of 2025 driven by supply/demand balance and HBM share gains.
Reduced estimates due to pricing pressure and unfavorable mix impacts.

Micron announced as the sole memory company shipping HBM3E and SOCAMM for NVIDIA’s Grace Blackwell Ultra Superchip.
Developed SOCAMM (modular LPDDR5X) in collaboration with NVIDIA for the GB300 platform.
HBM3E deployment in NVIDIA’s Hopper and Blackwell systems.
Citi analyst noted:
- 50% increase in DRAM content for NVIDIA’s new GPUs, benefiting Micron.
- No direct impact on Broadcom from NVIDIA’s co-packaged optics (CPO) announcement.
- Mildly negative outlook for Intel and AMD due to Nvidia’s growing data center share.

Trump’s Call to Cancel CHIPS Act: Sought cancellation of the $52B CHIPS Act, citing investments from companies like TSMC and SoftBank without subsidies.
Legal implications: Chipmakers are reviewing contract termination possibilities.
Potential regulatory uncertainty for U.S. chipmakers and those with China operations.

Micron’s collaboration with NVIDIA positions it as a key player in high-bandwidth memory (HBM) solutions, enhancing its competitive edge in the data center market.
Analysts expect continued pressure on consumer end markets but optimism around DDR5 pricing and HBM demand.
Regulatory shifts under Trump administration may impact global chip supply chains and U.S.-based investments.

DDR5 Pricing Recovery: Citi highlights the largest year-to-date increase in DDR5 pricing, signaling potential stabilization and growth for Micron’s DRAM business.
HBM Growth: Anticipated recovery in HBM demand driven by data center expansion and AI adoption.
Regulatory Uncertainty: Potential cancellation of CHIPS Act may disrupt U.S. semiconductor investments and influence global supply chain dynamics.

Micron’s Q2 earnings will be critical to assess its ability to meet reduced expectations amid market challenges.
Collaboration with NVIDIA underscores Micron’s strategic focus on high-performance memory solutions.
Regulatory developments under the Trump administration may reshape the semiconductor industry landscape.