Memory chip companies expected to report big leaps in sales as earnings arrive
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The AI-driven price boom for memory chips and products will keep Sandisk and Micron Technology atop the sales leaderboard this earnings season, Wall Street says.
Why it matters: The massive sales rises these companies are expected to notch — as well as their guidance on coming quarters — could reassure investors with jitters about the durability of the AI boom.
- Just to be clear, the 345% increase for Micron — which reports very late in the cycle — is for the as-yet unreported quarter, not the giant fiscal Q3 numbers reported late last month. The Q3 numbers, coincidentally, showed 345% growth for the top line as well.
Zoom out: The AI boom is clearly the catalyst for the companies Wall Street expects the most from.
- This includes Lumentum — which makes fiber-optic networking equipment — Nvidia, Broadcom, server assembler Super Micro and Teradyne, which makes equipment for semiconductor testing.
Yes, but: There are a few surprises in here. For instance, medical diagnostics company Waters Corp. is expected to double sales because of an acquisition. A deal is also behind the big jump in sales for grain processing giant Bunge Global.
- Meanwhile, defense, intelligence and AI software company Palantir — a stock market darling in 2024 and 2025 — continues to be expected to generate really strong growth.
- But that hasn't done much for Palantir's stock price, which is down about 30% this year, and roughly 40% from its peak in late 2025.
Between the lines: Sometimes, such as in the case of Palantir, the stock market prefers a journey toward growth and profitability rather than actually achieving it.
What we're watching: Whether these giant numbers, should they be achieved, actually excite the market.
- Just last week, gobsmacking results from South Korean chip giant Samsung were followed by a steep selloff.
