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Investing.com - Barclays raised its price target on Micron Technology (NASDAQ:MU) to $195.00 from $175.00 on Wednesday, while maintaining an Overweight rating on the semiconductor stock. The company, currently valued at $186 billion, has seen its stock surge nearly 100% year-to-date, with InvestingPro data showing strong financial health metrics.
The price target increase reflects more aggressive high-bandwidth memory (HBM) commentary and enterprise SSD price increases that are driving stronger near-term fundamentals for the memory chipmaker. This optimism is supported by impressive revenue growth of 58% over the last twelve months, according to InvestingPro data, which offers 15+ additional insights about Micron’s performance.
Barclays noted several positive developments in Micron’s outlook, including a more aggressive stance on DRAM and HBM, improved margins, and better end market outlooks across traditional server, PC, and automotive segments.
Capital expenditure projections have increased from over $13 billion in fiscal year 2025 to more than $18 billion in fiscal year 2026, primarily due to DRAM capacity expansions, which Barclays believes will benefit equipment maker Lam Research over competitors.
NAND pricing is also providing a near-term tailwind driven by hard disk drive shortages, though Barclays emphasized that NAND remains a structurally different market compared to DRAM, with bit production decreasing both in the current quarter and in the company’s guidance.
In other recent news, Micron Technology reported impressive financial results for the fourth quarter of fiscal 2025, surpassing analysts’ expectations. The company achieved earnings per share of $3.03, exceeding the forecasted $2.77, and reported revenue of $11.32 billion, which was higher than the anticipated $11.11 billion. Additionally, BofA Securities raised its price target for Micron Technology to $180 from $140, maintaining a Neutral rating on the stock. The firm highlighted the growing demand for artificial intelligence as a key factor driving high bandwidth memory sales and noted the memory industry’s supply discipline, which has bolstered pricing in both traditional and new markets. These developments reflect the ongoing strength and potential in Micron Technology’s business operations.
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