Micron may surpass NVIDIA by the end of the year, analysts say: EPS could surge by 588% next year!
Micron Technology expects revenue growth of 84.2% in the fourth quarter of this year, surpassing NVIDIA's 72.1%. Analysts predict that Micron's earnings per share will surge by 588% in 2025. Despite Micron's stock price rising 14.8% this year, investors remain cautious about its shares. The S&P 500 index is expected to see an overall revenue growth of 4.7% in the fourth quarter, with Micron being the best-performing company
According to Zhitong Finance APP, NVIDIA (NVDA.US) has won investors' favor this year with astonishing revenue growth, but this S&P 500 index AI champion is about to fall to second place. S&P Global Market Intelligence and MarketSurge indicate that analysts believe memory chip manufacturer Micron Technology (MU.US) will see an 84.2% revenue growth in the fourth quarter of this year, surpassing NVIDIA's expected quarterly revenue growth of 72.1%.
Such strong growth reminds investors that NVIDIA is not the only growth story worth watching in the S&P 500 index. NVIDIA's stock price has risen 179% this year, making this point easy to overlook.
Micron's chips are becoming a key component for data-hungry AI learning models. Analysts believe the company's revenue will reach $8.7 billion this year. Among the S&P 500 index, no other constituent company is expected to grow as rapidly in the fourth quarter.
Moreover, Micron's growth story will not be limited to the fourth quarter. Analysts predict its earnings per share will surge by 588% by 2025.
However, investors remain cautious about Micron's stock. The company's RS rating is only 48, and its stock price has risen 14.8% this year. Micron is known for its unstable earnings growth.
Meanwhile, the market is also assessing the growth situation of the S&P 500 index in the fourth quarter. Investors are preparing for robust growth among S&P 500 index companies, excluding Micron and NVIDIA.
FactSet states that analysts believe the constituent companies of the S&P 500 index as a whole will see a revenue growth of 4.7% in the fourth quarter. Among the S&P 500 index constituent companies, eight are expected to achieve a quarterly revenue growth of 40% or more. This includes some less obvious AI companies, such as hard drive manufacturers Seagate Technology (STX.US) and Western Digital (WDC.US).
But for now, Micron is the standout performer.
