Goldman Sachs reiterates Neutral rating on Micron stock amid HBM focus

Published 03/09/2025, 11:04
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Investing.com - Goldman Sachs has maintained its Neutral rating and $130.00 price target on Micron Technology (NASDAQ:MU), currently trading at $118.48 with a market capitalization of $132.6 billion, as investors continue to monitor the company’s high-bandwidth memory (HBM) production ramp. According to InvestingPro data, the company has demonstrated impressive revenue growth of 58% over the last twelve months.

Goldman Sachs expects investors to remain focused on Micron’s HBM progress and the sustainability of pricing strength in upcoming quarters. Following Micron’s positive pre-announcement, the firm anticipates some upside to consensus estimates, with more moderate growth expected in the November quarter. InvestingPro analysis reveals that 19 analysts have recently revised their earnings estimates upward, suggesting growing confidence in the company’s prospects.

The investment bank believes investor sentiment on Micron is currently balanced, with positive factors including the company’s continued execution on HBM and sustained near-term strength in DRAM pricing offset by concerns about industry DRAM pricing trends in 2026. The company maintains a healthy financial position with a current ratio of 2.75, indicating strong liquidity to meet short-term obligations.

Key focus areas for investors include Micron’s progress on its HBM production ramp and market share targets as 2025 concludes, the sustainability of DRAM pricing strength, and stability of gross margins given the ongoing mix shift toward HBM4 products.

Goldman Sachs analyst James Schneider provided these insights as part of the firm’s ongoing coverage of the memory chip manufacturer, highlighting both positive execution and potential market challenges ahead.

In other recent news, Micron Technology has been at the center of analyst activity, reflecting its strategic position in the high bandwidth memory (HBM) market. CLSA initiated coverage of Micron with an Outperform rating, highlighting the company’s strong positioning to meet AI-driven demand for HBM. Cantor Fitzgerald maintained its Overweight rating, acknowledging Micron’s market share challenges due to Samsung’s progress but still expressing confidence in the company’s prospects. Wolfe Research reiterated its Outperform rating with a $160 price target, emphasizing Micron’s expected earnings per share growth by 2026. Erste Group also initiated coverage with a Buy rating, noting Micron’s improved financial guidance for the fourth quarter of fiscal 2025. Additionally, Wells Fargo reaffirmed its confidence in Micron’s ability to maintain its HBM market share target in the latter half of 2025. These developments underscore the attention Micron is receiving from analysts, given its pivotal role in the evolving memory technology landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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