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What Analysts Think of Micron Stock Ahead of Earnings

  • 17.03.2025 20:02
  • msn.com
  • Keywords: AI

Micron Technology will report its fiscal second-quarter results after Thursday's market close. Analysts are mostly bullish on the stock, with UBS highlighting an improved pricing outlook for Micron’s memory chips. The stock has gained nearly 23% in 2025.

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Micron Technology

Micron Technology

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Analyst rating: Buy

Analysts are bullish on Micron's stock with a price target of $124, suggesting potential upside.

Context

Analysis of Micron Stock Ahead of Earnings Report

Key Facts and Data Points

  • Earnings Release: Micron Technology (MU) will report fiscal second-quarter results after market close on Thursday.
  • Analyst Sentiment: Of 12 tracked analysts, 10 have a "buy" or equivalent rating, while 2 rate the stock "hold."
  • Consensus Price Target: $124, implying ~20% upside from Monday's intraday level of $103.36.
  • UBS Upgrade: UBS raised its price target to $130 (from $125) due to an "improved pricing outlook" for Micron’s memory chips.
  • Revenue Projections:
    • Full-year revenue forecast increased by UBS to $35.48 billion (up from $34.52 billion).
    • Q2 revenue expected at $7.9 billion, up ~36% year-over-year.
    • Adjusted earnings projected at $1.67 billion ($1.43 per share), up from $476 million ($0.42 per share) YoY.
  • Stock Performance: Micron shares rose nearly 3% on Monday and have gained ~23% in 2025 year-to-date.

Business Insights and Market Implications

  • Strong Analyst Confidence: The majority "buy" rating reflects positive sentiment among analysts, driven by expectations of improved pricing and demand for Micron’s memory chips.
  • Memory Chip Recovery: UBS's upgraded outlook highlights a potential recovery in the memory chip market, benefiting Micron as a key supplier.
  • Growth Trajectory: Q2 and full-year revenue growth projections suggest Micron is on track to capitalize on current market conditions.
  • Competitive Dynamics: As a partner to Nvidia, Micron’s position in AI-driven markets could further bolster demand for its products.

Strategic Considerations

  • Market Sentiment: The stock's 23% year-to-date gain indicates investor confidence in Micron’s ability to navigate the memory chip cycle.
  • Long-Term Effects: A sustained recovery in the semiconductor sector could position Micron for long-term growth, though risks like supply chain disruptions remain.

Regulatory and Industry Impact

  • No specific regulatory developments mentioned, but industry trends toward higher memory chip demand (driven by AI and data center growth) are expected to benefit Micron.