Micron Technology Could Benefit From Strong Nvidia Earnings Report on August 26
As technology companies continue to ramp up spending in artificial intelligence (AI), five major hyperscalers—Microsoft, Amazon, Alphabet, Meta Platforms, and Oracle—are collectively planning over $700 billion in capital expenditures. This surge is driven by rising demand for compute capacity and increasing memory component costs. Nvidia's upcoming Q2 earnings report on August 26 has drawn attention due to expectations of strong performance: analysts predict revenue of around $92.1 billion with EPS at $2.09, representing nearly a doubling in profits year-over-year. Analysts suggest that robust demand for Nvidia’s latest GPU and CPU platforms could lead to an earnings beat. Micron Technology is positioned to benefit from this momentum as it supplies high bandwidth memory (HBM) used in Nvidia's accelerators. With HBM production tied under multiyear agreements, increased GPU shipments by Nvidia are likely to tighten supply further, potentially leading to higher contract prices for Micron and other memory suppliers.
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Topics: AI spending capital expenditures hyperscalers Nvidia earnings guidance