Micron Guides $50 B Q4 Revenue, $31 EPS; Shares Jump Then Slip
MU•Micron guided Q4 revenue of $50 billion and EPS of $31, surpassing estimates and reporting an 84.9% gross margin with projections to reach 86% next quarter. Shares surged over 15% before a 4.8% drop, reflecting its 9x forward P/E and uncertainty over which customers will absorb rising AI hardware costs.
1. Record Guidance and Margins
Micron projected fiscal Q4 revenue of $50 billion and adjusted EPS of $31, both figures topping consensus, while reporting an 84.9% gross margin and forecasting margin expansion to about 86% next quarter.
2. Stock Reaction and Valuation
The guidance sparked a more than 15% intraday share surge, followed by a 4.8% premarket decline, as investors evaluated its 9x forward price-to-earnings ratio against peers and the sustainability of elevated profit expectations.
3. AI Cost Burden and Market Implications
With tight memory supply driving pricing power, questions are focused on which customers—ranging from Big Tech cloud operators to device manufacturers and end-users—will ultimately absorb the rising costs of AI hardware and how that will affect industry margins.
