PREVIEW: Micron stock dips as investors focus on AI demand

Micron MU.O shares dipping 1.3% on Wed ahead of qtrly results after the bell, as investors focus on demand for its HBM chips amid AI boom

Analysts expect qtrly rev up 30% to $8.87 bln, adjusted EPS seen at $1.60 vs $0.62 yr-ago, per LSEG, driven by strong demand for AI-related memory chips

AI infrastructure buildout has fueled demand for MU's HBM chips, which are used alongside Nvidia's NVDA.O advanced processors

"It appears that MU has moved past the trough of the past down cycle and is now entering into a stabilization phase (pricing/margins)," Synovus Trust Senior Portfolio Manager Daniel Morgan wrote in a client note this week

MU's stock has jumped about 50% YTD, outperforming Nasdaq .IXIC which rose 3% in same period

Stock is about 12% below its 52-week intraday high of $144.07 reached on Jun. 26, 2024