Micron Technology (MU) recently achieved a remarkable milestone, reaching an all-time high as anticipation builds for its fiscal fourth-quarter earnings release next week. Deutsche Bank analyst Melissa Weathers reaffirmed her positive outlook on Micron by raising the stock’s price target from 155 to 175, highlighting her strong belief in the company’s growth potential.
During today’s trading session, Micron shares experienced a slight dip to 156.74 after peaking at a record 160.34 earlier. This fluctuation occurred as investors navigated the stock’s recent gains, which have put it in the 20%-25% profit-taking zone following its breakout from a cup-with-handle formation at a buy point of 128.60.
Boise, Idaho, the heart of Micron’s operations, has been witnessing increased demand for high-bandwidth memory (HBM) products particularly in data centers that support artificial intelligence applications. According to Weathers, the dynamic random-access memory (DRAM) supply is expected to remain tight through 2026, primarily because HBM is utilizing a significant share of production capacity. This persistent supply constraint is likely to lead to meaningful growth in average selling prices (ASP), which, in turn, will enhance gross margins (GM).
Micron is set to announce its fiscal Q4 results on September 23, with analysts projecting an adjusted earnings per share of $2.78, reflecting a staggering 135% increase compared to the same quarter last year. Sales are anticipated to climb by 48% to reach $11.12 billion. For the upcoming fiscal first quarter, estimates show earnings of $3 per share, marking a 68% rise, with sales expected to hit $11.8 billion, up 36%.
With a remarkable composite rating of 99, Micron is recognized for its outstanding performance in the stock market. It currently ranks on multiple distinguished stock lists, showcasing its position among industry leaders and further solidifying its reputation as a key player in the semiconductor sector.
As trends evolve in consumer technology and artificial intelligence, it will be interesting to observe how Micron capitalizes on these opportunities in the coming quarters.
