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Investing.com - Wells Fargo (NYSE:WFC) raised its price target on Micron Technology (NASDAQ:MU) to $170 from $150 on Thursday while maintaining an Overweight rating on the stock. The new target represents significant upside from the current price of $127.25, though InvestingPro analysis suggests the stock is currently trading near its Fair Value.
The firm cited Micron’s strong high-bandwidth memory (HBM) performance as a key driver for the increased target. Micron reported its fiscal third-quarter HBM revenue grew approximately 50% quarter-over-quarter, implying more than $1.5 billion in this segment. This growth contributes to Micron’s impressive 71% year-over-year revenue growth, with total revenue reaching $31.3 billion. Want deeper insights? InvestingPro offers 13 additional investment tips for Micron, along with comprehensive financial analysis.
Micron reaffirmed its calendar year 2025 HBM total addressable market estimate at $35 billion or higher, with the company targeting a low to mid-20% market share in the second half of 2025. The company is on track with HBM3e 12-high to 8-high production in the fiscal fourth quarter with strong yields, and plans to ramp HBM4 production in calendar year 2026.
Wells Fargo noted Micron has expanded its customer base, now shipping high volumes to four customers across GPU and ASIC segments, up from three customers mentioned in the previous quarter. The firm projects the HBM market could reach $80-$90 billion by calendar year 2028, with potential upside to $100 billion.
Micron guided fiscal fourth-quarter 2025 gross margin at 42% plus or minus 100 basis points, with expectations for continued upward trajectory into fiscal year 2026 driven by lean inventory, bit constraints into the first quarter of fiscal 2026, and an improving product mix weighted toward data center and high-value solutions. The company’s strong financial health is reflected in its current ratio of 3.13 and moderate debt levels, with debt-to-equity at 0.31. Access Micron’s complete financial analysis and Pro Research Report through InvestingPro, your source for professional-grade investment insights.
In other recent news, Micron Technology reported better-than-expected quarterly earnings, with strong results driven by robust demand for memory chips across various sectors. Citi raised its price target for Micron to $150, citing the company’s solid performance and improved outlook for memory chip demand and pricing. Stifel also increased its price target to $145, highlighting the strengthening demand in data centers and a favorable product mix contributing to Micron’s improved gross margin guidance. Raymond (NSE:RYMD) James lifted its target to $150, noting the company’s impressive fiscal third-quarter results and a promising outlook for the fourth quarter, supported by growth in High Bandwidth (NASDAQ:BAND) Memory (HBM) revenue. Piper Sandler set a new price target of $165, emphasizing Micron’s strong quarter and positive guidance for the upcoming quarter, driven by improved market conditions and a favorable product mix. Wolfe Research raised its target to $160, expecting a cyclical recovery in the semiconductor industry and highlighting Micron’s participation in HBM growth. These developments reflect a broad consensus among analysts on Micron’s strong market positioning and potential for future growth.
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