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Investing.com - Mizuho (NYSE:MFG) raised its price target on Micron Technology (NASDAQ:MU) to $155 from $150 while maintaining an Outperform rating after the company increased its revenue and earnings outlook for the current quarter. According to InvestingPro data, analyst targets range from $95 to $200, with the stock currently trading near its 52-week high of $129.85.
Micron revised its August quarter revenue forecast to $11.2 billion from $10.7 billion previously, exceeding the consensus estimate of $10.8 billion. The company also raised its earnings per share guidance to $2.85 from $2.50, above analyst expectations of $2.52. This positive outlook aligns with InvestingPro’s analysis, which shows impressive revenue growth of 58.22% over the last twelve months and a strong financial health score.
The memory chipmaker cited "improved pricing, particularly in DRAM, and strong execution" as key factors behind the improved outlook. Micron also increased its gross margin forecast to 44.5% from 42.0%, compared to the consensus estimate of 42.1%.
Mizuho believes much of the upside is coming from stronger High Bandwidth (NASDAQ:BAND) Memory (HBM) performance, noting that industry peer SK Hynix expects HBM to grow at a 30% compound annual growth rate through 2030.
The firm sees continued strength in legacy DRAM pricing into the second half of 2025, with Micron’s HBM driving a five times higher average selling price increase compared to traditional DRAM.
In other recent news, Micron Technology has reported stronger-than-expected pre-announced results for its August-ending quarter, significantly boosting its revenue and earnings outlook. The company anticipates revenue of approximately $11.2 billion, an increase from its previous forecast of $10.7 billion. This improvement is largely attributed to better-than-expected pricing in DRAM and NAND Flash products. Analysts have responded positively to these developments, with Rosenblatt Securities maintaining a Buy rating and a $200 price target, while Wolfe Research reiterated its Outperform rating with a $160 price target. Stifel also reiterated its Buy rating, highlighting an improved outlook for revenue, gross margins, and non-GAAP earnings per share. The company has raised its fiscal fourth-quarter guidance, reflecting strong execution and pricing strength in both DDR4 PC memory and LPDDR4 mobile DRAM. These developments come as the broader memory chip market, including AI-related chips, anticipates significant growth, with competitors like SK Hynix forecasting a 30% annual increase in the AI memory chip sector until 2030.
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