Shares of Micron Technology Inc MU soared in early trading on Thursday, following the company’s impressive fiscal second-quarter report.
As the dust settles on this bustling earnings season, analysts have shared their insights on Micron’s Q2 results.
- Wedbush analyst Matt Bryson renewed an Outperform rating, elevating the price target from $103 to $130.
- JPMorgan analyst Harlan Sur upheld an Overweight rating, raising the price target from $105 to $130.
- Mizuho Securities analyst Vijay Rakesh confirmed a Buy rating, increasing the price target from $105 to $124.
- Goldman Sachs analyst Toshiya Hari reiterated a Buy rating, with a price target hike from $112 to $122.
- Stifel analyst Brian Chin sustained a Buy rating, ramping up the price target from $120 to $140.
Explore further analyst insights on stock ratings.
Wedbush: Micron Technology witnessed a notable rise in DRAM and NAND prices, with DRAM up in the high teens and NAND surging over 30% sequentially. Bryson suggested that the double-digit revenue growth forecast, despite flat overall bits, hints at the potential for another round of significant price escalations.
Apart from HBM domain focus, the analyst emphasized Micron’s expansion in high-margin segments, such as data center SSDs (triple-digit YoY growth) and the groundbreaking 128 GB server DRAM based on a monolithic die.
JPMorgan: Sur highlighted Micron Technology’s robust guidance for the upcoming quarter, reflecting improved demand, attractive pricing trends, and a gradual reduction in excess inventories. The overall positive momentum is poised to propel DRAM and NAND price hikes in various markets.
Anticipating further price advancements driven by AI server demand and growth in HBM/DDR5, the team expects sustained elevation in DRAM and NAND pricing across multiple memory and storage domains through the next year and into CY24.
Mizuho Securities: Rakesh anticipated Micron’s continued success in the HBM arena, projecting C25E HBM revenues nearing $3 billion. The company is envisaged to generate substantial revenue from HBM in fiscal 2024, with a substantial portion already allocated from its F25E HBM3E capacity.
As HBM3E capacity accelerates, Micron aims to secure a market share matching its overall DRAM share (~25%) in C25E, solidifying its footprint in the high-performance HBM segment.
Goldman Sachs: Hari applauded Micron Technology’s robust quarterly results underpinned by buoyant DRAM and NAND pricing, leading to elevated FY3Q non-GAAP gross margins and non-GAAP EPS that outstripped prior Street expectations.
Highlighting Micron’s underperformance relative to peers in Compute and Networking amidst the AI landscape, the analyst encouraged investors to consider Micron for its forthcoming margin-enriching HBM revenue surge.
Stifel: Chin noted that Micron surpassed revenue and gross margin estimates, driven by marked ASP growth in DRAM and NAND. The company’s revenue guidance exceeding expectations signifies significant ASP-driven quarter-over-quarter growth.
With a keen eye on incremental demand effecting DRAM prices, the analyst underscored positivity surrounding ASP growth, strengthening traction, and shipments in HBM domains, all of which fuel Micron’s optimistic outlook for ’25 revenue surpassing prior highs.
MU Price Action: Micron Technology’s shares surged by 15.52% to $111.19 at the time of publishing on Thursday.
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