Micron Needs a Rosy Outlook to Justify Its Soaring Stock Price

Core Insights - Micron Technology Inc. is expected to report net earnings per share of $2.65 on revenue of $11.2 billion for its fiscal fourth quarter, indicating significant growth compared to the previous year [1][5] - The stock has seen a 40% increase in September, raising questions about whether this growth is sustainable [1][3] Financial Performance - The projected earnings per share of $2.65 and revenue of $11.2 billion represent a substantial increase from last year's EPS of 79 cents and revenue of $7.8 billion [5] - For the full fiscal year, Micron's net EPS is anticipated to rise to $7.42 on revenue of $37 billion, compared to 70 cents and $25 billion in fiscal 2024 [5] Market Sentiment - Wall Street is optimistic about Micron's forecast, particularly regarding high-bandwidth memory chips, which are crucial for AI infrastructure [2][3] - The positive sentiment is reflected in the performance of related companies like Seagate and Western Digital, which have also experienced significant stock rallies [3][4] Investor Expectations - Investors are keen to hear Micron's guidance, with any positive outlook likely to result in strong market reactions [4][6] - The previous year's earnings report led to a notable stock surge, setting high expectations for continued growth [6]