Micron Q3 Guidance Splits Investors
Micron Q3 guidance shows strong margins and AI-driven demand, sparking debate as analysts diverge on DRAM and NAND pricing and near-term stock upside.
KEY TAKEAWAYS
- Management guided fiscal Q3 revenue at $33.5 billion ± $750 million and gross margin of about 81%.
- Bank of America kept a $1,550 target; Citi cut its target to $1,150, revealing an analyst split.
- Investors debated sustainability of AI-driven memory demand amid concerns over DRAM and NAND pricing.
HIGH POTENTIAL TRADES SENT DIRECTLY TO YOUR INBOX
Add your email to receive our free daily newsletter. No spam, unsubscribe anytime.
Micron Technology Inc. (MU) released fiscal third-quarter guidance in a Q2 2026 earnings-call transcript on Aug. 10, 2026, sparking debate among investors. Management signaled continued strength in AI-driven memory demand, while analysts diverged on whether pricing trends will sustain the rally.
Fiscal Q3 Guidance and Margins
Micron guided fiscal Q3 revenue at $33.5 billion, plus or minus $750 million, with a gross margin of about 81%, operating expenses near $1.4 billion, and earnings per share of $19.15, plus or minus $0.40. Management said the gross-margin forecast implied a 600-basis-point sequential increase driven by higher prices, lower costs, and a favorable product mix. The company did not provide fourth-quarter gross-margin guidance in the excerpted call text.
Analyst Divergence and Market Reaction
Bank of America reiterated a Buy rating and set a $1,550 price target, describing the recent pullback as an enhanced buying opportunity. In contrast, Citi lowered its target to $1,150 from $1,400 while maintaining a Buy rating, citing a more cautious outlook for DRAM and NAND pricing and projecting Micron’s gross margins could fall from the mid-80% range to the mid-70% range next year.
Investors remain divided over whether the AI-driven memory demand cycle is peaking despite Micron’s strong quarterly guide. The stock had declined roughly 30% from its late-June record high but still posted substantial year-to-date gains. Premarket trading on Aug. 10, 2026, between 6:00 and 6:08 a.m. ET was mildly positive, reflecting Wall Street’s split between long-term bullish views on demand and caution about the memory cycle’s durability.
