TLDR
- Micron Technology reports Q3 earnings today after market close, with options pricing suggesting an 8% stock move in either direction
- Nvidia stock sits just 1% below its all-time high of $149.43, with Micron’s results potentially acting as a catalyst for a breakout
- Micron supplies high-bandwidth memory (HBM) chips essential for Nvidia’s AI accelerators to process large data volumes
- Wall Street analysts maintain bullish outlook on Nvidia with 35 of 40 rating it a Buy and average price target of $173.19
- Micron stock has gained over 50% in 2025 while Nvidia is up 17% over the past 12 months
Nvidia shares rose 2.6% on Tuesday and now hover just below their January record of $149.43. The chip giant’s next move higher might not come from its own announcements.
Instead, all eyes are on Micron Technology, which reports third-quarter earnings after Wednesday’s closing bell. The memory chipmaker’s results could serve as the catalyst that pushes Nvidia into uncharted territory.
The Memory Connection That Matters
Micron supplies high-bandwidth memory chips that are crucial for Nvidia’s AI dominance. These advanced memory modules allow Nvidia’s GPUs to handle enormous volumes of data in real time.
Without adequate supply of these components, Nvidia’s AI accelerators can’t operate at full capacity. Cloud giants, researchers, and enterprises all depend on this technology stack working smoothly.
Micron is one of only three companies worldwide capable of producing this specialized memory. The others are South Korean giants SK Hynix and Samsung.
When Micron reports earnings, investors aren’t just looking at revenue and profit numbers. They’re searching for clues about AI infrastructure demand and supply chain health.
A strong Micron beat with higher guidance would suggest Nvidia’s supply chain remains robust. It would also indicate that end demand for AI technology continues surging.
That type of positive signal could tip Nvidia stock into a breakout above its record high. The timing comes as summer tech earnings season kicks off.
Stock Performance Shows Connected Fates
Over the past 12 months, Nvidia stock has gained 17% while Micron has declined 9%. These numbers don’t tell the complete story though.
The two stocks often move together because their business fates are intertwined. Nvidia’s AI dominance depends on memory suppliers like Micron scaling production efficiently.
Tuesday’s price jump in both stocks hints that traders are positioning for positive Micron results. If those expectations prove correct, it could reignite the broader AI trade.
Options pricing suggests traders expect Micron stock to move close to 8% in either direction following earnings. That would put shares near $138 on the high end or around $118 on the low end.
Micron stock has already gained over 50% in 2025 on AI expectations. The shares climbed nearly 5% Tuesday to close at $127.91 ahead of results.
In March, Micron shares dropped 8% after the company issued gross margin guidance that disappointed analysts. The stock plunged 16% following December earnings when management warned about PC market softness.
Analyst Sentiment Remains Strong
Wall Street maintains a bullish outlook on Nvidia despite the stock trading near record levels. Of 40 analysts covering the shares, 35 rate it a Buy while four say Hold and just one recommends Sell.
The average 12-month price target sits at $173.19, roughly 20% above current levels. The highest target reaches $210, suggesting plenty of upside potential remains.
Most analysts tracked by Visible Alpha expect growing profits from Micron and rate the stock a Buy. Their average price target of $121 would imply a decline from Tuesday’s close after recent gains.
Micron’s earnings report represents more than just another chipmaker update. It serves as a temperature check on AI infrastructure spending and demand sustainability.
If orders remain strong, inventories stay tight, and pricing holds up, it validates the entire AI investment thesis. Weak results would raise questions about cycle longevity.
A blowout Micron report could boost both MU and NVDA shares while resetting expectations for third-quarter earnings across the sector. Nvidia stock currently trades at $148.51 in Wednesday’s premarket session.
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