Micron price target raised to $155 from $145 at Cantor Fitzgerald

Investing.com - Cantor Fitzgerald raised its price target on Micron Technology (NASDAQ:MU) to $155 from $145 on Thursday, maintaining an Overweight rating on the memory chipmaker’s stock. The stock, which has surged 42% in the past six months and currently commands a market capitalization of $142 billion, is trading near InvestingPro’s Fair Value estimate.

The firm cited Micron’s August quarter guidance, which exceeded expectations with projected revenues of $10.7 billion versus consensus estimates of $9.9 billion, gross margins of 42.0%, and earnings per share of $2.50 compared to consensus of $2.03. This strong guidance aligns with InvestingPro data showing impressive revenue growth of 71% over the last twelve months, with analysts expecting continued sales growth this year.

Cantor Fitzgerald noted that HBM (High Bandwidth (NASDAQ:BAND) Memory) revenues reached a $6 billion-plus run-rate in the May quarter, with projections to hit a $10 billion run-rate by the end of calendar year 2025, representing approximately 20% of total company revenues.

The research firm highlighted limited clean room availability and a trade ratio closer to 4:1 for HBM, combined with end-of-life D4 memory, as factors creating tight DRAM supply conditions as the industry transitions to HBM3E 12H and HBM4 technologies.

Cantor Fitzgerald now forecasts Micron’s calendar year 2025 earnings per share at approximately $9.00, above consensus estimates of $7.59, and raised its calendar year 2026 EPS estimate to $14.00, significantly higher than the consensus of $11.68.

In other recent news, Micron Technology has reported robust financial results, with revenue for the May quarter reaching $9.30 billion and earnings per share of $1.91. The company has provided guidance for August quarter revenue of $10.7 billion, surpassing consensus estimates of $9.89 billion. Analysts have responded positively, with Mizuho (NYSE:MFG) raising its price target to $150, UBS to $155, Wells Fargo (NYSE:WFC) to $170, Wolfe Research to $160, and Citi also to $150. These adjustments highlight the significant growth in Micron’s High Bandwidth Memory (HBM) segment, which has seen a 50% increase in shipments quarter-over-quarter.

Micron’s strategic focus on HBM is reflected in its plans to ramp up production and expand its market share to 20-25% by the second half of 2025. UBS and Wells Fargo have noted the growing importance of HBM within Micron’s DRAM business, with UBS projecting a careful expansion of manufacturing capacity to maintain favorable market conditions. Additionally, Micron has raised its planned U.S. investment from $170 billion to $200 billion, signaling confidence in its future growth.

Wolfe Research has emphasized the anticipated cyclical recovery in the semiconductor industry as a factor in its optimistic outlook. Meanwhile, Citi attributes Micron’s strong performance to increased demand for memory chips in artificial intelligence applications and data centers. These developments indicate a positive trajectory for Micron, with analysts projecting further growth in the coming years.

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