Micron Earnings Are About to Hit; Record Quarters Are on the Way, Says Rosenblatt

Micron (NASDAQ:MU) earnings will be under the microscope tomorrow (Wednesday, December 17), with the memory giant slated to release its fiscal first-quarter (November quarter) results after the market close.Claim 50% Off TipRanks Premium and Invest with Confidence Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential The stock has been one of 2025’s best performers, climbing 183%, benefiting from elevated memory prices amid tightened supply and its positioning in the AI chip game. So, can the rally continue once the print is in? That remains to be seen, although Rosenblatt’s Kevin Cassidy, an analyst ranked among the top 2% on Wall Street, thinks a strong readout and outlook is in the offing. “We are expecting Micron to report another record quarter only to be topped by February quarter guidance,” the 5-star analyst confidently said. Cassidy points to strengthening demand across all end markets that is supporting higher ASPs (average selling prices). The analyst’s model assumes 2% bit growth and a 9% sequential increase in ASPs, though that ASP assumption could prove conservative depending on the timing of contract negotiations. The primary item to monitor is management’s guidance on when “incremental capacity” begins to come online in a meaningful way and how quickly the product mix can continue shifting toward higher-margin cloud and data center offerings. As for the 2QF26 guide, that should beat consensus too. Although February is typically a seasonally weaker quarter, Cassidy sees PC and handset OEMs “scrambling” to secure DRAM and NAND Flash supply not just for the quarter, but through CY26 and into CY27. This trend should help balance margins across all segments, including Cloud, Core Data Center, PC & Mobile, and Automotive & Embedded. The “key debate” continues to center on capacity optimization and timing, with the margin outlook increasingly dependent on execution. Specifically, this hinges on how effectively Micron can optimize existing capacity and convert it into “sellable output.” Recent steps to exit lower-return consumer channels, including the Crucial consumer business, underscore management’s emphasis on “higher-value end markets.” Investors will be closely watching management’s comments on the capacity ramp schedule, specifically the timing of near-term vs. longer-term supply additions, the rate at which usable bit supply increases, and the distribution of that additional output among HBM, server DRAM, and other market segments. Despite the shares’ strong rally, given the company’s financial performance, Cassidy thinks the growth is justified. The forward P/E remains around 12x, similar to the start of the year. “Meanwhile,” the analyst summed up, “the company is becoming structurally stronger as AI applications are both increasing the need for memory and allowing for differentiation. We recommend owning the stock.” Quantifying that stance, Cassidy’s Buy rating is backed by a $300 price target, implying the stock will post growth of 26% in the months ahead. (To watch Cassidy’s track record, click here) Cassidy’s take is a common one on Wall Street right now; the stock claims a Strong Buy consensus rating, based on a mix of 26 Buys and 3 Holds. Going by the $266.14 average target, a year from now, shares will be changing hands for a 12% premium. (See Micron stock forecast)