Micron Technology (NASDAQ: MU) is set to report fiscal fourth-quarter earnings on Sept. 30, with Wall Street expecting approximately $50.8 billion in revenue and $31.35 in earnings per share. These figures represent 350% revenue growth and nearly 11 times the EPS reported in the same quarter last year. Micron's own guidance aligns with these comparable ranges, signaling that the memory supercycle remains active.
The high expectations stem from surging artificial intelligence demand from hyperscalers and tight memory supply. Major technology companies are increasing their spending to support AI infrastructure build-outs, directly benefiting memory makers like Micron. Amazon raised its 2026 capital expenditure outlook from $200 billion to $220 billion, with CEO Andy Jassy citing memory prices as a specific factor for the increase. Elon Musk also highlighted Micron during Tesla's earnings call and discussed memory prices in detail during a SpaceX call. Additionally, Nvidia placed supply and capacity orders totaling $267 billion through fiscal 2029, with management stating that much of this spending is allocated for memory.
Analysts suggest that investors are currently at the end of the research and development phase of AI adoption, often referred to as "Act 1," with the global rollout, or "Act 2," potentially being significantly larger. This perspective contrasts with the view that early opportunities in AI stocks have already been missed. The current setup for Micron includes booming demand and a forecast modeling a substantial quarter, leading some to question whether chasing momentum into the earnings release is the optimal strategy.
Timing the market around single events is described as an exercise in false precision, as a stock can sell off on light guidance despite beating estimates, or see a miss shrugged off if the longer-term story remains intact. The recommended approach for investors is to build a position through dollar-cost averaging over the long term rather than attempting to buy shares around one specific earnings event. Micron remains positioned to benefit from AI infrastructure tailwinds, making it a solid buy according to some analysis.
However, The Motley Fool Stock Advisor analyst team recently identified what they believe are the 10 best stocks for investors to buy now, and Micron Technology was not included in that list. The team noted that past recommendations, such as Netflix in December 2004 and Nvidia in April 2005, produced significant returns for investors who bought at the time of recommendation. Stock Advisor's total average return is cited as 932%, compared to 211% for the S&P 500. Adam Spatacco holds positions in Amazon, Nvidia, and Tesla, while The Motley Fool holds positions in and recommends Amazon, Micron Technology, Nvidia, and Tesla.