Micron Technology Inc. (NASDAQ:MU) shares are trading above $1,000 ahead of its fiscal fourth-quarter earnings report due after the bell on Wednesday, and a growing chorus of retail traders on social media is betting the chipmaker will finally announce a stock split as AI and high-bandwidth memory demand push the stock into rarefied territory.
Retail Traders are Buzzing About a Split
One trader asked in a post on social media platform X whether it “would make sense for $MU to perform a stock split tomorrow,” and another user warned the share price would “get annihilated” if Micron went ahead with one.
Other posts floated a 10-for-1 split, with price targets between $1,500 and $2,500 per share, while one trader predicted Micron would announce “a stock split of at least” around Q1 of 2027.
Not everyone is convinced a split changes much.
One user argued that the chipmaker “doesn’t need to double to $2,000 for the split to matter,” since “post-split options volume explodes, retail participation rises, and the float psychologically expands.”
A Reddit user pushed back on the split talk altogether, pointing out that SanDisk Corp. (NASDAQ:SNDK) is trading even higher at $1,729.76 and still hasn’t split its stock.
One user predicted a split if they post earnings per share of $45.
Why Micron Stock Has Surged
Micron is one of three major memory chipmakers, along with South Korea’s Samsung Electronics and SK Hynix Inc. (NASDAQ:SKHY), and has been one of the best-performing stocks over the past year as a memory shortage has sent chip prices skyrocketing.
The stock’s forward price-to-earnings ratio is 6.8, compared with the industry average of 37, according to Benzinga Pro.
Mega-Cap Splitters
Nvidia Corp. (NASDAQ:NVDA) did a 10-for-1 split in 2024 when its shares traded around $1,200, while Apple Inc. (NASDAQ:AAPL) split its stock four-for-one in 2020.
Amazon.com Inc. (NASDAQ:AMZN) authorized a 20-for-1 split in 2022, and in the same year Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) completed its own 20-for-1 split, having also split 2-for-1 in 2014.
Wall Street Expects a Record Quarter
Analysts expect Micron to report fiscal fourth-quarter revenue of $51.13 billion, up sharply from $11.31 billion a year earlier and a new company record, according to data from Benzinga Pro.
Micron has beaten revenue estimates for 12 straight quarters.
Analysts also expect earnings per share of $31.50, up from $3.03 a year ago, with the company having topped EPS estimates for 10 straight quarters.
Price Action: On Tuesday, shares closed 1.05% higher at $1065.08 and gained 0.64% in extended trading to $1071.92.
So far this year, the stock has climbed 237.67%, and over the past year, it has climbed 536.55%.
Benzinga Edge rankings indicate Micron’s stock has a Momentum score in the 99th percentile and a Growth score in the 93rd percentile.
See More: Top Growth Stocks
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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