Micron Technology Inc (NASDAQ:MU) could well be on course to top estimates in Wednesday’s first-quarter earnings, Wedbush analysts said.
First-quarter guidance was likely achievable, “if not beatable”, Wedbush said in a note ahead of the results.
Strong pricing trends and a favorable mix across Micron’s DDR5, HBM eSSDs storage products had left guidance reachable and even beatable, Wedbush highlighted.
Micron in September had projected revenue of around $8.7 billion with per-share earnings seen at $1.74.
However, conditions over the coming second quarter threatened more difficult times ahead for Micron, Wedbush warned.
Already pressured pricing around DRAM and NAND memory products looked likely to deteriorate further.
“Inventory reductions at client device original equipment manufacturers” were set to weigh, according to Wedbush, alongside “a push by hyperscalers to cut prices and a push-out of some Blackwell projects” using Nvidia chips.
“Having said this, we believe some of this pressure could be offset by mix,” Wedbush assured, though, leaving downside risks “relatively modest”.
An ‘outperform’ rating was reiterated as a result, alongside a $140 share price target.
Shares were up 0.5% at US$108.76 on Tuesday.