Micron stock rises as Rosenblatt maintains Buy rating on strong pre-announced results

Investing.com - Micron Technology (NASDAQ:MU) stock gained after Rosenblatt Securities reiterated its Buy rating and $200.00 price target following the company’s stronger-than-expected pre-announced results for its August-ending quarter. The stock, which has surged over 10% in the past week and is trading near its 52-week high, appears fairly valued according to InvestingPro calculations.

The semiconductor manufacturer, now commanding a market cap of $137 billion, reported performance exceeding expectations, driven primarily by DRAM and NAND Flash prices rising more than anticipated, according to Rosenblatt’s analysis. InvestingPro data shows analysts expect revenue growth of 46% this fiscal year.

Micron’s improved results stem from disciplined wafer supply spending and a strategic reallocation of DRAM wafers toward meeting the surging demand for High Bandwidth (NASDAQ:BAND) Memory (HBM), which has consequently tightened supply in traditional markets including servers, PCs, and smartphones.

Rosenblatt noted that these legacy markets will likely need to match the higher margins paid in the HBM segment, creating potential pricing leverage for Micron across its product portfolio.

The firm highlighted that Micron is receiving growing customer requests for customized HBM4E solutions, which introduces the potential for meaningful product differentiation in what has historically been considered a commodity business in the memory chip industry.

In other recent news, Micron Technology has raised its fiscal fourth-quarter guidance, anticipating revenue of $11.2 billion, plus or minus $100 million, due to improved DRAM pricing and strong execution. This revision surpasses the previous forecast of $10.7 billion, plus or minus $300 million, for the quarter ending August 28, 2025. Wolfe Research has reiterated its Outperform rating on Micron, citing a $160.00 price target, while Stifel has maintained its Buy rating with a $145.00 price target, both noting the company’s improved outlook. Analysts attribute this positive shift to enhanced pricing in DRAM products and strength in DDR4 PC memory and LPDDR4 mobile DRAM. Additionally, Micron has launched the industry’s first PCIe Gen6 data center SSDs, featuring the 9650 SSD with 28 GB/s sequential read speeds, which doubles the performance of competitive drives. The new lineup also includes the 6600 ION SSD, offering up to 122TB capacity in the E3.S form factor, with plans for a 245TB version in 2026. These developments highlight Micron’s strategic advancements in the memory chip sector.

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