Micron Technology is set to report its Q3 earnings, with analysts expecting an EPS of $0.53 on $6.67 billion in revenue. The company has had a strong year so far, with its stock price increasing by 87.5% in the first half of 2024. Micron has consistently exceeded earnings expectations in the past four quarters and is considered one of the major beneficiaries of the multi-year opportunity created by AI in the semiconductor industry [4c71c1a7].
The anticipation for Micron's earnings is high, with traders and investors having high expectations. However, there is also a significant implied volatility in the stock, with an expected price move of +/-13%. A miss or lack of positive sentiment in the earnings report could potentially lead to a decline in the stock price [4c71c1a7].
The impact of AI on Micron's stock performance is noteworthy. The company is seen as one of the key players benefiting from the advancements in AI technology. As AI continues to drive innovation and demand in the semiconductor industry, Micron is well-positioned to capitalize on this opportunity. The integration of AI into Micron's products and services is expected to contribute to its growth and profitability [4c71c1a7].
Interest in artificial intelligence (AI) has led to increased investment in stocks beyond Nvidia. Companies in the AI supply chain, such as Micron Technology, Vertiv Holdings, Palantir Technologies, Taiwan Semiconductor Manufacturing, and Microsoft, have experienced stock price gains. Micron Technology, which builds memory chips for Nvidia's AI-related offerings, saw its revenue increase to $6.81 billion in Q3 2024. Vertiv Holdings, a provider of specialized cooling systems for data centers, reported a 60% growth in orders in Q1 2024 due to increased demand from AI systems. Palantir Technologies, known for its AI offerings, examines a company's data and provides examples of how AI can be employed. Taiwan Semiconductor Manufacturing, a contract manufacturing giant, is invested in by Deepwater Asset and is expected to benefit from the growth of AI-enabling hardware. Microsoft, particularly through its partnership with OpenAI, is leveraging AI services running on its Azure cloud platform [ac4f9fb0].