Micron Technology (MU) will disclose its fiscal 2024 third-quarter results after the market closes on June 26.

The current estimate for non-GAAP earnings in the third quarter is 50 cents per share, a substantial improvement from the loss of $1.43 in the same quarter last year. The consensus revenue estimate is $6.7 billion, representing a 78.6% increase from $3.75 billion in the previous year.

Micron stock has experienced a 65.7% increase year-to-date, surpassing the 24.1% growth of the Technology sector. This remarkable performance results from an improving demand-supply environment for memory chips and Micron's consecutive quarters of strong financial results.

MU Earnings Forecast

Micron has been progressing in its recovery from the financial challenges it encountered in late 2022 and early 2023, as indicated by its most recent financial results. In the last four quarters, the company has surpassed the analysts' consensus estimate for non-GAAP earnings, resulting in an average surprise of 69.6%.

Micron's revenues and earnings exceeded consensus estimates and demonstrated substantial year-over-year growth in the second quarter of fiscal 2024.

The analysts' consensus for revenues for fiscal 2025 is $37.3 billion, representing a year-over-year increase of over 51%. The earnings consensus estimate is $7.81 per share, which indicates a more than eightfold increase.

Micron's financial health contributes to its investment appeal. The company's total liquidity was $12.2 billion, with cash and cash equivalents of $9.7 billion at the end of the second quarter of fiscal 2024. Micron's robust financial position allows it to invest in research and development, enhancing innovation and growth.

Micron Innovation Is Solid

Micron's ongoing innovation and diverse product portfolio facilitate its ability to secure new agreements. Advanced Micro Devices (AMD) and Cadence Design Systems (CDNS) are presently conducting tests on its next-generation DDR7 graphics memory, which boasts the industry's highest bit density.

Micron provides diverse products for the smartphone sector, servers, and personal computers, including DRAM and NAND options. DRAM chips are indispensable for servers and personal computers, while NAND flash chips are indispensable for SSDs and devices.

Micron also provides its HBM3E high-bandwidth memory for NVIDIA's (NVDA) most recent AI device. Micron has already sold out its HBM processors for 2024, and the majority of its 2025 supply has been allocated.

MU Stock Forecast Technical Analysis

In the daily chart, MU stock bullish trend remains steady where the most recent price hovers above the 20 day Exponential Moving Average.

In the volume structure, the highest activity level since February 2024 is still below the current MU stock price, signaling active buying pressure from institutions. In other technical indicators, RSI rebounded from the 70.00 overbought line, while the MACD signal line showed a bearish crossover.

Although a bullish trend is visible, the dynamic 100-day Simple Moving Average is below the 120.95 static support line. It is a sign that a downside correction is pending as a mean reversion, which might be activated after forming a valid trendline breakout.

On the bullish side, the 135.65 to 120.00 zone would be a possible reversal area from where a valid bullish recovery with a reversal candlestick formation could resume the existing trend toward the 150.00 psychological area.

*Disclaimer: The content of this article is for learning purposes only and does not represent the official position of VSTAR, nor can it be used as investment advice.