Micron Technology remains a buy despite recent underperformance, driven by strong AI-driven demand and expected recovery in PC, smartphone, and consumer electronics markets. Short-term concerns in the chip sector and inventory buildup by manufacturers have impacted Micron's ability to raise prices immediately. Micron's FY 2025 outlook is robust, with record revenue and profitability expected, supported by increased CapEx for advanced technology and new fabs.
I believe Micron is now undervalued after its 33.6% year-to-date dip off its highs, trading below its 10-year median EV/EBITDA on a forwarding basis. Strong Q4 performance driven by record revenues in NAND and Storage segments, with significant advancements in memory technologies like 1-beta DRAM and G8/G9 NAND. AI-driven demand and strategic investments in cutting-edge technologies are expected to sustain growth, despite industry cyclicality concerns.
Micron benefits from tailwinds, but volatility could undermine its potential gains.
Micron's stock is a buy due to attractive valuation and strong long-term revenue prospects, driven by AI, 5G, and other technological advancements. Recent Q4 results show strong performance with revenue growth, margin expansion, and high demand for high-value solutions like HBM and SSDs. Improved pricing outlook and industry supply constraints are expected to drive higher ASPs, benefiting Micron's profitability and capital returns.
This chip stock is not only cheaper than Nvidia, but it is set to grow at a faster pace than the AI pioneer as well.
Micron's beat-and-raise quarter is eye-popping.
Micron Technology, Inc. proved the doubters and analysts wrong with a Babe Ruth-style homerun earnings report that saw revenues nearly double YoY driven by the artificial intelligence (AI) boom. The irony is that at least three analysts downgraded, trimmed estimates or lowered price targets for Micron ahead of its fiscal fourth-quarter earnings report, sending shares as low as $84.12 on Sept.
Cantor Fitzgerald analyst C J Muse reiterated Micron Technology Inc MU with an Overweight rating and a $150 price target.
MU's recent gains are promising, but concerns over HBM chip oversupply suggest that one should hold the stock for now.
Micron (MU) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Management envisions a market with increasing demand and decreasing supply, which signals an excellent pricing dynamic.
The semiconductor company expects the market for its products to grow nicely in 2025.