Micron (MU) Earnings Preview: 400%+ EPS Growth?
Micron (MU) is pretty much the last semiconductor company to report this earnings season; its 2Q26 performance is due after the bell today. Despite mixed market feelings around AI capex, estimates are big – especially for year over year growth. Zacks anticipates EPS of $8.80, a 464% rise vs last year, and revenue of $19.30 billion, which would be 140% growth over the same period.
Investor expectations may be buoyed by Nvidia’s (NVDA) GTC conference this week, where CEO Jensen Huang unveiled new architecture, AI features, and revenue projections of around $1T by 2027.
Unlike Nvidia, Micron actually manufactures semiconductor chips rather than just designing them. It’s the only U.S.-based company to do so, with most of the world’s manufacturing in Taiwan. It is aggressively expanding its U.S. facilities, currently building in Idaho and New York.
Micron is benefiting from heavy spending on artificial intelligence computing that’s driving demand for memory and storage components, as are high-flying peers Sandisk (SNDK) and Western Digital (WDC). Amazon.com (AMZN), Microsoft (MSFT), Alphabet (GOOGL) and Meta Platforms (META) are projected to plow $618 billion combined into capital expenditures in 2026, up from $376 billion in 2025. That demand should help memory prices “stay elevated at least through 2027.”
Also unlike Nvidia, much of Micron’s business is focused on DRAM and NAND memory chips, which are cheaper than the CPUs and GPUs behind AI computing power. However, multiple memory chips are needed per CPU or GPU, creating higher demand – Nvidia’s Vera Rubin system, the latest model, reportedly use three times the DRAM that the Blackwell systems do. Even better, the U.S. government will require U.S. contractors to use products created in the U.S., giving Micron a key domestic advantage as the government adopts AI systems. In December, it said it was sold out of high-bandwidth memory for all of 2026.
While its chips go into everything from smartphones to autos, its biggest revenue segment is Cloud. Last quarter, its cloud revenue nearly doubled to $5.28 billion, making up around 40% of its revenue mix. This is the segment that serves AI data centers. The extreme demand and physical shortages give it substantial pricing power.
In addition to high growth expectations, traders should keep in mind the stock’s incredible moves over the past two years. It tripled in 2025 and is already up over 60% year-to-date alone, making a new all-time high yesterday at $462.73 and is even higher in premarket trading. This is despite the rotation out of tech the market has seen this year.
Investors will be watching forward guidance, as well as gross and operating margins, which have both seen a substantial bump since insatiable AI demand began. The options market is implying a +/- $33.50 move, or around 7.3%. Tune into the Schwab Network for a live breakdown of the report this afternoon and much more.
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