Recently, Zacks.com users have been paying close attention to Micron (MU). This makes it worthwhile to examine what the stock has in store.
MU's Q3 gross margin hit 39% on strong DRAM and NAND pricing. Management sees Q4 margins hitting 42%.
The consensus price target hints at a 25.7% upside potential for Micron (MU). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
Micron NASDAQ: MU insiders sold in Q2 2025 and continued the trend in Q3, but investors shouldn't. The insider selling coincides with the onset of a robust rebound in share prices, and share-based compensation is in play.
Micron's strong Q3 FY25 results and surging AI-driven HBM/DRAM demand signal the early stages of a memory upcycle, supporting my continued buy rating. Tight DRAM inventories, robust revenue growth, expanding margins, and a low forward PEG ratio highlight Micron's substantial upside potential despite cyclical risks. The expansion of AI solutions in the data center drives demand for high-powered memory chips, benefiting Micron.
Micron's Embedded unit sales jumped 20% sequentially in Q3 as AI gains traction in industrial and automotive markets, driving fresh momentum.
Key Points in This Article: One hidden AI chip stock quietly doubled from its April low, thriving on surging demand for high-bandwidth memory critical for AI data centers.
Micron (MU) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Micron Technology crushed Q3 profit estimates, driven by surging AI-fueled demand for high bandwidth memory (HBM) in the data center market. HBM demand is soaring in tandem with GPU demand, leading to record sales, margin expansion, and a projected $10 billion annual operating profit run-rate. Micron trades at a steep discount to AI peers despite the fastest anticipated profit growth, making the stock very attractive at current levels.
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Micron's valuation might look overextended now, but it's still essentially fairly valued. This bull run isn't over, but this isn't a time when elite investors will be buying. The Company faces a closer cyclical cliff potential than other AI names. There may not be a smooth transition from AI capex to robotics demand at scale. I'm anticipating about a 25% return for MU stock over the next 12 months. At that point, I will likely sell my position and find new undervalued growth stocks.