Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Micron Technology (NASDAQ:MU) stock is gaining attention after Wolfe Research reiterated its Outperform rating and $160.00 price target on the memory chip manufacturer. The stock, currently trading at $122.34, is near its 52-week high of $129.85, with analyst targets ranging from $95 to $200. According to InvestingPro data, 22 analysts have recently revised their earnings estimates upward for the upcoming period.
The company pre-announced its fiscal fourth-quarter results ahead of a competitor conference, indicating revenue would be approximately $500 million higher than previously expected, with gross margins about 250 basis points better than prior guidance. Micron attributed these improvements to better pricing, particularly in DRAM products. The company’s strong execution is reflected in its impressive 58.2% revenue growth and healthy gross profit margin of 37.1% in the last twelve months. InvestingPro’s comprehensive analysis indicates the stock is currently fairly valued, with additional insights available in the Pro Research Report.
Micron now expects operating expenses to be slightly above its prior guidance at $1.22 billion versus the previous $1.20 billion. This adjustment, combined with improved revenue and margins, drives implied operating margins approximately 280 basis points higher than previous guidance to around 33.6%.
The company raised its earnings per share guidance to $2.85 from the previous $2.50, reflecting the improved pricing environment and what Wolfe Research described as "strong execution" by the company.
Wolfe Research noted that High Bandwidth (NASDAQ:BAND) Memory (HBM) traction remains strong for Micron, with the firm expecting the company to achieve its "DRAM-like share target" this year, consistent with previous company guidance.
In other recent news, Micron Technology has raised its fourth-quarter fiscal 2025 financial guidance, citing improved pricing in DRAM products and strong execution. The company now anticipates revenue of $11.2 billion, plus or minus $100 million, an increase from its earlier forecast of $10.7 billion, plus or minus $300 million, for the quarter ending August 28, 2025. Stifel has reiterated its Buy rating for Micron, maintaining a price target of $145.00, following the company’s improved outlook for revenue, gross margins, and non-GAAP earnings per share. This guidance boost is attributed to strength in DDR4 PC memory and pricing strength in LPDDR4 mobile DRAM.
In product developments, Micron has launched three new data center solid-state drives (SSDs) featuring its G9 NAND technology, including the industry’s first PCIe Gen6 NVMe SSD. The 9650 SSD offers 28 GB/s sequential read speeds, doubling the performance of competitive drives. Additionally, Micron introduced a 256-gigabit radiation-tolerant NAND flash memory product designed for space applications, which it claims is the highest-density radiation-tolerant SLC NAND currently available. These advancements highlight Micron’s ongoing innovation in memory technology.
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