Micron Technology (MU) is set to announce its third-quarter earnings on Wednesday after the market closes, with traders bracing for a significant movement in the stock’s price. Current options pricing indicates that the market anticipates a fluctuation of around 8%—which translates to nearly $10—in either direction in the aftermath of the earnings report. This would situate the stock between approximately $138 at its peak and down to about $118 at its lowest.
Historically, Micron’s stock has shown volatility following earnings releases, particularly evident in March when the shares fell 8% due to a gross margin forecast that was deemed a setback despite otherwise strong financial results. Similarly, a 16% drop occurred after the December earnings report when the company hinted at softness in the PC sector.
On a more optimistic note, Micron’s stock has surged over 50% thus far in 2025, buoyed by expectations of increased demand for AI technology. This positive trajectory continued as the stock rose nearly 5% on Tuesday, closing at $127.91 just a day before the earnings announcement.
Analysts are generally optimistic about Micron’s potential for profit growth, as evidenced by their consensus rating of “buy” for the stock. However, the average price target of $121 suggests a potential dip from Tuesday’s closing price, reflecting a cautious outlook despite recent gains.
Overall, while challenges remain evident, particularly from previous earnings reactions, the anticipation of robust performance driven by AI demand gives investors hope for a positive outcome from Wednesday’s report.