Micron Technology Rallies Despite Anticipated Earnings Miss Amid DRAM Weakness: Retail Looking To ‘Buy The Dip’

Shares of Micron Technology ($MU) surged more than 6% in early Monday trading, even as analysts forecast an earnings miss for the first quarter of fiscal 2025 due later this week.

In fact, the ticker surged to the top of Stocktwits’ top trending list. 

Citi expects the company to post results and guidance for the first quarter of fiscal 2025 slightly below consensus due to ongoing weakness in the Dynamic Random-Access Memory (DRAM) sector.

According to Stocktwits data, Wall Street is expecting earnings per share of $1.76 on revenue of $8,71 billion. 

 The brokerage attributed these issues to excess DRAM inventory in the PC and smartphone markets, which have seen slowing sales, potentially weighing on pricing.

Despite these headwinds, Citi remains optimistic about a turnaround, noting that inventory challenges could ease by spring as demand from data centers offsets weak consumer electronics sales. 

It should be noted that the company has not missed earnings estimates for the last four quarters. 

Micron Technology Sentiment and Message Volume on Dec 16 as of 10:50 a.m. ET | Source: Stocktwits

Despite these headwinds, retail sentiment around the stock has improved to ‘extremely bullish’ from ‘neutral’ a day ago. Chatter has also surged to ‘extremely high’ from ‘low.’ 

Some are eyeing a potential buying opportunity if a post-earnings dip occurs, especially as the chip sector gains momentum following Broadcom’s robust results last week.

Micron shares have risen 32% year-to-date, outpacing broader market gains. 

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