Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Micron Technology (NASDAQ:MU), currently trading at $124.06 and near its 52-week high of $129.85, raised its fiscal fourth-quarter guidance above the high end of its previous ranges, prompting Stifel to reiterate its Buy rating and $145.00 price target on the stock. According to InvestingPro data, 22 analysts have recently revised their earnings estimates upward for the upcoming period.
The memory chipmaker improved its outlook for revenue, gross margins, and non-GAAP earnings per share for the quarter ending in August. With impressive revenue growth of 58.22% and a healthy P/E ratio of 22.29, Stifel believes the guidance boost reflects not only the previously noted strength in DDR4 PC memory but also subsequent pricing strength in LPDDR4 mobile DRAM.
While DDR4 represents approximately 20% of PC industry DRAM bit demand, LPDDR4 accounts for closer to 50% of mobile and smartphone DRAM demand, according to Stifel’s analysis. The firm suggests tight supply conditions could persist as Micron and competitors end-of-life these product lines, with DDR4 and LPDDR4 together representing about 10% of Micron’s sales.
Stifel indicated the guidance update might have been better received if driven by factors beyond these legacy products, particularly if datacenter and hyperscaler demand for HBM and high-capacity DRAM were contributing factors.
Micron was scheduled to present at an investor conference where it might provide additional commentary on its fiscal first quarter ending in November, as well as more details on what drove the improved outlook. For deeper insights into Micron’s financial health and detailed analyst coverage, check out the comprehensive Pro Research Report available on InvestingPro, which offers exclusive analysis of 1,400+ top stocks.
In other recent news, Micron Technology has raised its fourth quarter fiscal 2025 revenue guidance to $11.2 billion, plus or minus $100 million, citing improved DRAM pricing and strong execution. The company also launched the industry’s first PCIe Gen6 data center SSDs, showcasing the 9650 SSD with impressive 28 GB/s sequential read speeds and the 6600 ION SSD with up to 122TB capacity. Additionally, Micron introduced a 256-gigabit radiation-tolerant NAND flash memory for space applications, marking the highest-density radiation-tolerant SLC NAND available. Bernstein SocGen Group reiterated its outperform rating on Micron, highlighting the company’s robust performance in high-bandwidth memory, which remains sold out for the calendar year 2025. On a related note, SK Hynix forecasts a 30% annual growth in the AI memory chip market until 2030, despite concerns about rising memory chip prices. These developments reflect the dynamic landscape of the memory chip industry and its potential for growth.
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