The Zacks Analyst Blog Highlights Micron Technology, NVIDIA, Broadcom and Marvell Technology

For Immediate Release

Chicago, IL – June 25, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Micron Technology, Inc. MU, NVIDIA Corp. NVDA, Broadcom Inc. AVGO and Marvell Technology, Inc. MRVL.

Here are highlights from Tuesday’s Analyst Blog:

Should You Buy, Hold, or Sell Micron Stock Before Fiscal Q3 Earnings?

Micron Technology, Inc. will report fiscal third-quarter earnings after the closing bell on Wednesday. With its strong performance in the S&P 500 this month, a notable increase in both revenues and profits in the upcoming report could boost its stock price. So, should investors buy Micron stock pre-earnings or await clarity on margins? Let’s explore –

What to Expect from Micron’s Fiscal Q3 Earnings?

Micron is expected to report earnings per share (EPS) of $1.59 in the fiscal third quarter, a substantial increase from $0.62 in the same quarter last year, representing a year-over-year jump of 156.5%. Strong demand for Micron’s products in high-value segments, coupled with improved pricing conditions, is expected to drive the company’s earnings.

Revenues are estimated to reach $8.84 billion in the fiscal third quarter, up 29.7% from last year’s sales of $6.81 billion. It’s also more than the fiscal second quarter’s sales of $8.05 billion. Sequentially rising sales indicate increased demand in memory markets, especially those driven by artificial intelligence (AI).

Additionally, Micron’s 10.7% average positive earnings surprise over the past four quarters indicates a strong likelihood of meeting its fiscal third-quarter results and boosting its stock price. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Reasons to Be Bullish on Micron Stock

With the rise of AI, the demand for graphics processing units (GPUs) has grown because they can handle multiple tasks more efficiently. Now, GPUs require data storage memory, with Micron’s HBM3E leading the industry.

NVIDIA Corp., therefore, has selected Micron’s HBM for its upcoming GB200 and GB300 Blackwell systems. Additionally, other chipmakers like Broadcom Inc. and Marvell Technology, Inc. are working on integrating HBM into their platforms, suggesting potential growth for Micron.

Micron expects the data center HBM market to grow to $35 billion this year, reaching $100 billion by 2030. The company confirmed that it has sold out its entire HBM capacity for this year and is negotiating new contracts for next year. The high demand for HBM has allowed Micron to increase its pricing by 11% in 2025.

The rise in HBM demand and prices positions Micron for strong earnings both in the upcoming report and in the future. Micron also stands to benefit from the growing demand for DRAM in AI smartphones and PCs.

Here’s How to Trade Micron Ahead of Fiscal Q3 Earnings

Strong earnings expectations from high demand for HBM products will boost Micron’s stock price. The projected rise in NVIDIA’s AI chip sales due to Micron’s HBM3E in their GPUs will further benefit its business and stock value. Micron also plans to increase market share against Samsung, as the latter faces challenges passing NVIDIA’s qualification test with HBM3E memory chips, compared to Micron’s improving HBM-chip yields.

Stakeholders should, thus, hold Micron stock for long-term positive returns. Brokers, too, are somewhat positive about Micron’s prospects, increasing the average short-term price target for MU to $127.07 (up 2.8%) from $123.60. The highest target is $172, indicating a potential 39.2% upside.

However, investors should be cautious about Micron’s declining gross margin; it fell from 39.5% in the first quarter to 37.9% in the second, with a forecast of 36.5% for the third quarter.

Despite revenue growth, margin compression occurs due to intense price competition counteracting the benefits from increased volumes and better market scenarios. Hence, new entrants should delay betting on Micron stock until after the fiscal third-quarter results for clarity on revenue growth and margin pressures.

For now, Micron has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Why Haven't You Looked at Zacks' Top Stocks?

Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.

Today you can access their live picks without cost or obligation.

See Stocks Free >>

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research