The release of Micron’s Q2 fiscal 2025 report caused a drop in the company’s shares, and Donald Trump’s sweeping import tariffs pushed the stock even lower.
Micron Technology, Inc. delivered strong results for Q2 of fiscal year 2025, showing a substantial increase in revenue compared to the previous year. Despite these strong results, investors reacted negatively, sending the company’s stock lower due to concerns about declining gross profit margins and substantial capital expenditures for the construction of a new chip manufacturing facility.
This article provides key highlights from Micron Technology, Inc.’s quarterly report and presents a technical analysis of MU stock, forming the basis for the Micron stock forecast for Q2 2025.
Micron Technology, Inc. Q2 FY 2025 report
Micron Technology’s Q2 fiscal 2025 earnings report showed strong results, with revenue up 38% from the previous year, reaching 8.05 billion USD and surpassing analysts’ expectations. EPS came in at 1.56 USD, well above the 0.42 USD reported in the corresponding quarter last year. Growth was primarily driven by a significant increase in data centre sales, especially high-bandwidth memory (HBM) products for AI applications, which generated over 1 billion USD in revenue, up 50% from the previous quarter.
However, despite this positive performance, Micron’s stock fell 8% following the release of the report due to investor concerns about weakening gross profit margins, particularly in consumer segments such as NAND flash memory, and substantial capital investment in the launch of a new chip manufacturing plant in Idaho.
For Q3 fiscal 2025, Micron forecasts revenue of 8.6-9.0 billion USD and EPS of 1.47-1.67 USD, which is above analysts’ forecasts. The company expects continued robust demand for its AI-related products, with HBM revenues expected to remain strong until 2026. However, investors are cautious due to potential issues with gross margins and high capital expenditure on new production facilities.
Micron Technology, Inc. stock forecast for Q2 2025
Micron’s stock traded between 84 USD and 114 USD from August 2024 to March 2025. Investors reacted negatively to the release of the Q2 fiscal 2025 report, driving the stock down to the lower boundary of this range. On 2 April, Donald Trump imposed sweeping tariffs on goods imported to the US. Against this backdrop, US stock indices moved lower, with Micron shares breaking below the 84 USD support level. Based on Micron Technology’s stock performance, possible price movements in Q2 2025 are as follows:
The forecast for Micron Technology’s stock suggests a further decline to the nearest support level at 64 USD. The price could then rebound from this level and rise towards the 84 USD resistance level. However, if the 64 USD support level fails to hold, Micron shares could drop further to 50 USD.
Micron Technology, Inc. stock analysis and forecast for Q2 2025
Published by:
Thomas Wallace