Micron Technology stock set to rise as guidance beats expectations

Investing.com - Micron Technology (NASDAQ:MU) reported quarterly results that exceeded analyst expectations, with revenue of $11.32 billion surpassing Wall Street estimates of $11.12 billion. According to InvestingPro’s comprehensive analysis, Micron is currently showing signs of being undervalued, making these strong results particularly noteworthy for value investors.

The memory chip manufacturer posted a gross margin of 45.7% and non-GAAP earnings per share of $3.03, both figures coming in above consensus forecasts of 44.7% and $2.82 respectively. Get deeper insights into Micron’s financial health and access exclusive semiconductor industry analysis with InvestingPro’s detailed research reports, available for 1,400+ top stocks.

Micron’s guidance for the fiscal first quarter significantly exceeded analyst projections, with expected revenue of $12.5 billion at the midpoint compared to Street estimates of $11.98 billion, while non-GAAP gross margin was guided to 51.5%, well above the 46.1% consensus.

The company’s non-GAAP EPS guidance range of $3.60-$3.90 also substantially topped analyst expectations of $3.09 per share.

Goldman Sachs maintained its Neutral rating and $130 price target on Micron stock, noting investors will likely focus on the company’s progress in high-bandwidth memory (HBM) production, DRAM pricing strength, and gross margin stability given the ongoing product mix shift.

In other recent news, Nvidia has announced a significant strategic partnership with OpenAI, drawing considerable attention from multiple investment firms. UBS has maintained its Buy rating on Nvidia, citing the potential for substantial revenue from the partnership, estimating it could generate around $400 billion over several years. DA Davidson also reiterated its Buy rating, noting the letter of intent for OpenAI to deploy at least 10 gigawatts of Nvidia systems for future AI models. Benchmark continues to support Nvidia with a Buy rating, emphasizing the use of Nvidia systems in OpenAI’s planned AI data centers. Bernstein SocGen Group has reaffirmed an Outperform rating, highlighting the possibility of Nvidia investing up to $100 billion in OpenAI. Rosenblatt Securities maintains its Buy rating, focusing on the 10 gigawatts of Nvidia systems to support OpenAI’s next-generation AI infrastructure. These developments reflect a strong consensus among analysts regarding Nvidia’s strategic direction and potential growth from this partnership.

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