Semiconductor maker SMART Global Holdings (NASDAQ:SGH) will be announcing earnings results tomorrow after the bell. Here's what investors should know.

Last quarter SMART reported revenues of $274.2 million, down 30% year on year, missing analyst expectations by 0.3%. It was a mixed quarter for the company, with an impressive beat of analysts' EPS estimates. While revenue missed by a small margin, full year revenue outlook was raised, which is a major positive.

Is SMART buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting SMART's revenue to decline 33.6% year on year to $285.1 million, a further deceleration on the 4.5% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates five times over the last two years.

Looking at SMART's peers in the semiconductors segment, only Micron Technology has so far reported results, delivering top-line growth of 57.7% year on year, and beating analyst estimates by 8.8%. The stock traded up 10.6% on the results.

Investors in the semiconductors segment have had steady hands going into the earnings, with the stocks up on average 0.3% over the last month. SMART is up 12.4% during the same time, and is heading into the earnings with analyst price target of $26.5, compared to share price of $25.8.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.