Should You Buy Micron Technology Stock Before June 25?

Micron Technology is set to release its fiscal Q3 2025 results on June 25, with expectations of substantial revenue and EPS growth driven by strong demand for its memory chips, particularly HBM3E used in AI data centers and Nvidia's GPUs. The company forecasts the data center HBM market to reach $100 billion by 2030 and is already sold out of HBM3E until 2026, positioning it favorably within the AI infrastructure buildout; Micron's valuation is also attractive relative to Nvidia, suggesting a buying opportunity for long-term investors.

Analysis

Micron Technology is strategically positioned to capitalize on the burgeoning artificial intelligence sector, not through GPUs, but via its critical memory and storage solutions. The company's HBM3E (high-bandwidth memory) is industry-leading, evidenced by its selection for Nvidia's latest Blackwell and Blackwell Ultra GPUs, and is reportedly sold out until 2026, underscoring robust demand. Micron anticipates the data center HBM market to expand significantly, from a projected $35 billion this year to $100 billion by 2030. This demand extends to AI-enabled PCs and smartphones, which require increased memory capacities. Financially, Micron demonstrated substantial growth in its fiscal 2025 second quarter, with total revenue up 38% year-over-year to $8.1 billion and compute and networking revenue surging 109% to $4.6 billion, leading to a 271% increase in non-GAAP EPS to $1.56. For the upcoming fiscal 2025 third quarter results due June 25, Micron guided for revenue around $8.8 billion (a 29% year-over-year increase) and non-GAAP EPS of approximately $1.37 (a 121% year-over-year increase). With a trailing-12-month P/E ratio of 23.3, Micron's stock appears attractively valued compared to GPU-centric AI players like Nvidia, which trades at a P/E of 45.7, especially considering its integral role in the AI hardware ecosystem.

Key Decisions for Investors

• Investors should consider Micron Technology for long-term exposure to the AI megatrend, given its pivotal role in supplying high-demand memory products like HBM3E for data centers and AI-enabled devices.
• The current valuation, with a P/E ratio of 23.3, presents a potentially more accessible entry point into the AI semiconductor space relative to higher-multiple peers, warranting consideration ahead of anticipated market growth.
• Closely monitor the fiscal Q3 2025 earnings report on June 25 for confirmation of guided revenue and EPS growth, and particularly for management's updated outlook on HBM demand, production ramp-up, and competitive positioning with HBM4E.
• Given that Micron's HBM3E is already sold out until 2026 and is integral to Nvidia's new GPU architecture, investors might view any share price volatility around the earnings release as a potential opportunity, focusing on the sustained long-term demand trajectory.