Investors witnessed a meteoric surge in the trajectory of Micron Technology Inc MU shares following a sensational fiscal second quarter performance by the tech titan.
In an earnings season regaling analysts with strength and vitality, several key takeaways emerged from Micron’s quarterly glory.
- Wedbush analyst Matt Bryson took the reins, propelling the price target from $103 to $130 while maintaining an Outperform rating.
- JPMorgan analyst Harlan Sur steered the ship, raising the price target from $105 to $130 under an Overweight rating.
- Mizuho Securities analyst Vijay Rakesh orchestrated a Buy rating, setting sail with a price target surge from $105 to $124.
- Goldman Sachs analyst Toshiya Hari helmed a course, navigating towards a price target increase from $112 to $122 with a Buy rating.
- Stifel analyst Brian Chin anchored the ship, steering towards a price target boost from $120 to $140 under a Buy rating.
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Wedbush: Matt Bryson highlighted the rise in DRAM prices and a dazzling over 30% hike in NAND prices. Bryson’s astute foresight predicts double-digit revenue growth despite steady overall bits volume, indicating that prices are set to soar once more.
Looking beyond the horizon, Bryson points out Micron’s thriving HBM business and success in bolstering its footing in high-margin segments, including the exponential growth in data center SSDs and a groundbreaking 128 GB server DRAM based on a monolithic die model.
JPMorgan: Harlan Sur lauded Micron’s stellar quarterly performance and buoyant guidance for the upcoming quarter. Sur attributes this optimistic outlook to a surge in demand, favorable pricing trends, and the gradual depletion of excess inventories, driving robust price escalations in the DRAM and NAND spheres.
Mizuho Securities: Vijay Rakesh projected a significant leap for Micron in the HBM realm, envisioning C25E HBM revenues reaching around $3 billion. The analyst forecasts the continuation of substantial HBM revenue generation into fiscal 2024, foreseeing hundreds of millions more in the coffers.
In a strategic masterstroke, Rakesh revealed, “Micron has nearly sold out the bulk of its F25E HBM3E capacity.” As HBM3E gains momentum, Micron aims to match its HBM market share with the overall DRAM stake of around 25% in the C25E progression.
Goldman Sachs: Toshiya Hari trumpeted Micron’s triumph as exceedingly robust, driven by surging DRAM and NAND pricing. Hari’s pronouncement of the forecast for FY3Q non-GAAP gross margins well ahead of the Street’s expectations indicates a promising outlook.
Embarking on an optimistic note, Hari emphasized, “Amidst the underperformance of the stock vis-a-vis peers in the Compute and Networking sector within the AI framework, Micron stands as a beacon. An impending uptick in margin-boosting HBM revenue beckons investors to seize the opportunity to navigate the MU realms.”
Stifel: Brian Chin’s analysis unearthed a revenue and gross margin bonanza, surpassing both self-projected and consensus estimates. Chin attributes the stellar performance to a substantial surge in DRAM and NAND ASP, propelling revenues skyward.
Chin’s outlook painted a vivid portrait of buoyant DRAM prices responding keenly to incremental demand. The fuel for this optimism lies in ASP growth and a burgeoning uplift in the HBM segment, shaping Micron’s guidance towards surpassing prior revenue milestones in ’25,” Chin elucidated.
MU Price Action: At the time of publication, Micron Technology shares had surged by an impressive 15.52%, ascending to $111.19 on Thursday.
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