How Micron's earnings results could impact chip ETFs
View original at finance.yahoo.comHow Micron's earnings results could impact chip ETFs The 8:30 Hosts Julie Hyman, Pras Subramanian, and Jake Conley discuss the health of memory exchange-traded funds (ETFs) and how Micron's (MU) quarterly earnings results will factor in…
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Micron's earnings are important but not make-or-break for the AI trade; it is an interstitial report due to its different reporting cadence
60% confidenceMicron's high margins stem from supply constraints; if it could make more it would, and the margin would fall, so it may be unsustainable
60% confidenceOver the last 11 prints Micron's stock has split the difference between rising and falling; it likely needs a huge print to be at least moderately rewarded
60% confidenceConsensus expects EPS growth of 951%, revenue growth of 355% and a gross margin of 86.2% for Micron
60% confidenceConditions for Micron are still very good and Morgan Stanley is overweight, but post-report estimate increases may be smaller than in past quarters
60% confidenceThere are 57 buy ratings, four holds and zero sells on Micron; the bull case rests on long-term multi-year supply agreements and a data center build-out with no end in sight
60% confidenceChannel checks suggest third-quarter DRAM prices are up 20 to 30% quarter over quarter despite long-term agreements, NAND pricing is up 15%, and prices should keep rising in the fourth quarter
60% confidenceSamsung most recently said it was swinging back toward producing lower-end memory
60% confidenceAutomakers such as GM cited being unable to get enough lower-end memory chips, a real demand signal
60% confidence