Analysts reboot Micron Expertise inventory worth goal forward of earnings initially appeared on TheStreet.
An elephant would possibly always remember however Micron Expertise (MU) has extra space for storing.
The Boise, Idaho, firm makes reminiscence and storage chips for information facilities, computer systems and smartphones, and its shopper listing consists of such tech-sector superstars as AI-chip chieftain Nvidia (NVDA) , Mac and iPhone maker Apple (AAPL) , Fb mum or dad Meta Platforms (META) and software program kingpin Microsoft (MSFT) .
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Make no mistake, there’s cash in reminiscences, and we’re not simply speaking about these singing cats on Broadway.
“After the historic downturn of 2022–2023, the reminiscence trade has entered a part of robust restoration. In 2024, reminiscence income reached a document $170 billion,” in accordance with market researcher Yole Group.
“This rebound was fueled by AI-training necessities in information facilities, with [high-bandwidth memory) playing a pivotal role due to its premium pricing and performance advantages,” the firm added.
HBM continues to outperform the broader DRAM chip segment, Yole Group said. This year HBM revenue is set to nearly double to around $34 billion.
Micron is a key player in the HBM market, offering solutions like HBM3E and HBM4 designed for high-performance computing and AI applications.
Micron Technology CEO Sanjay Mehrotra recently touted a plan to expand the company’s U.S. investment. (Photo by Mandel Ngan/AFP via Getty Images)MANDEL NGAN/Getty Images
The company recently joined the Trump administration to unveil plans to expand its U.S. investments to about $150 billion in domestic memory manufacturing and $50 billion in research and development, creating an estimated 90,000 direct and indirect jobs.
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“Micron’s U.S. memory manufacturing and R&D plans underscore our commitment to driving innovation and strengthening the domestic semiconductor industry,” Chairman, President and CEO Sanjay Mehrotra said in a statement.
The company’s shares are up nearly up nearly 45% this year and off 16% from this time in 2024.
Investment firms have been issuing research reports for Micron Technology ahead of its fiscal-third-quarter earnings report, scheduled for June 25.
Wedbush boosted its price target on Micron to $150 from $130 while maintaining an outperform rating.
The firm said memory-pricing trends turned more positive in the second quarter.
And while Wedbush said it doesn’t see as significant an inflection in Q3 as it had been expecting back in March, the firm said pricing for both DRAM and NAND, which are two types of semiconductor memory, “still will lift over the next couple of quarters.”
Better fundamentals are driven by stronger enterprise/server demand, which started around April and looks to hold through the rest of the year, Wedbush said. Demand for both AI and standard workloads appears better than might have been initially anticipated, it said.
“Moreover, we view growing [high-bandwidth memory] necessities as not simply optimistic for MU’s numbers but in addition finally optimistic for trade dynamics as [capital spending] and clean-room house are reallocated to help HBM development,” Wedbush mentioned.
Associated: Analysts rework Micron inventory worth targets after earnings
This may restrict the probability of an excessive amount of provide of NAND/DRAM, and it will increase the chance that manufacturing of extra commonplace components will path demand. That, the agency mentioned, would create a extra optimistic pricing/margin cycle vs. what’s embedded in its expectations, the agency mentioned.
Morgan Stanley maintained an equal-weight score and $98 worth goal on Micron, given how a lot the inventory has rallied already, in accordance with The Fly. However the funding agency is “tactically bullish,” provided that AI spending is materially accelerating as Micron grows its participation.
The funding agency, which notes that its estimates stay 20% above consensus for August-quarter earnings, additionally highlights Sandisk, (SNDK) which it likes higher long run and on which it has an obese score.
Primarily based in Milpitas, Calif., Sandisk designs and produces flash-memory merchandise, together with reminiscence playing cards, USB flash drives and solid-state drives.
Consensus numbers have began to return up for Micron over the previous few weeks, however along with Morgan Stanley being about 20% above consensus for August earnings per share, the agency can also be 14% above for November after it raised estimates six weeks in the past.
Associated: Fund-management veteran skips emotion in funding technique
Analysts reboot Micron Expertise inventory worth goal forward of earnings first appeared on TheStreet on Jun 20, 2025
This story was initially reported by TheStreet on Jun 20, 2025, the place it first appeared.
