Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Micron Technology (NASDAQ:MU) stock gained attention on Wednesday as Wells Fargo reaffirmed confidence in the company’s high bandwidth memory (HBM) market share targets. The semiconductor giant, now valued at $143 billion, has seen its shares surge 17% in the past week alone, according to InvestingPro data.
Wells Fargo stated it remains confident in Micron’s ability to achieve and sustain its low to mid-20% HBM market share target in the second half of 2025.
The financial institution highlighted Micron’s HBM4E logic die customization as a key differentiator, noting this creates "a very different business model" where key customers would likely work with only one or two HBM suppliers on these custom solutions.
Wells Fargo indicated that HBM4E appears to be a "2027+ story" in terms of market impact and revenue generation for Micron.
The firm also emphasized Micron’s favorable position utilizing its "very mature 1b DRAM process node with HBM4," contrasting this with competitors like Samsung that are transitioning to a 1c process.
In other recent news, Micron Technology has reported positive developments in its financial performance for the August quarter, leading to several analyst actions. The company announced an increase in its financial guidance, projecting fiscal fourth-quarter revenue of approximately $11.2 billion, which is a $500 million rise from previous estimates by UBS. Additionally, Micron raised its gross margin forecast to about 44.5% and earnings per share to $2.85. JPMorgan responded by raising its price target for Micron to $185, highlighting improved pricing in the DRAM market across AI/datacenter, smartphone, and PC markets. TD Cowen reiterated a Buy rating and increased its November quarter EPS estimate from $2.90 to $3.13 based on market checks. Cantor Fitzgerald also maintained an Overweight rating with a $155 price target following the company’s raised outlook. Meanwhile, BofA Securities kept its Neutral rating and $140 price target, noting broad-based strength in DRAM and NAND memory chips. These developments reflect a positive sentiment among analysts regarding Micron’s recent performance and future prospects.
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