Micron Technology Reports Strong Earnings Amid Stock Fluctuations

Micron Technology, Inc. (MU), located in Boise, Idaho, is a leading company in memory and storage solutions. With a market capitalization of $109.1 billion, Micron operates globally, offering a wide range of high-performance products through its Micron and Crucial brands.

Large-Cap Leader in Memory Solutions

Micron is classified as a “large-cap stock,” indicating its notable market value. The company’s innovations are pivotal for the data economy and support advancements in artificial intelligence and other data-heavy applications.

Recent Stock Performance

Despite its strong market presence, MU stock has decreased by 37.8% from its peak of $157.54 on June 18. Interestingly, the stock has risen 2.5% over the past three months, surpassing the iShares Semiconductor ETF (SOXX), which fell 4.4% in that same period.

Long-term Growth Outlook

On a broader scale, Micron’s performance appears promising. Year-to-date, the stock has increased by 14.8%, and over the last year, it has risen by 27.7%. In comparison, SOXX has recorded gains of 12.2% in 2024 and 24.9% over the past 52 weeks.

Historically, MU traded above its 50-day and 200-day moving averages until mid-July and early August, when a decline occurred, mainly due to a broader downturn in chip stocks. This was driven by reports indicating that the U.S. government was considering stricter controls on semiconductor technology exports to China.

Positive Earnings Results

Despite recent challenges, Micron’s stock surged over 14.7% after announcing impressive Q4 earnings on September 25. The company reported a remarkable 93.3% year-over-year increase in revenue, reaching $7.8 billion, largely due to heightened demand for its data center DRAM products linked to rising AI usage. Additionally, Micron’s NAND revenues hit a record, surpassing $1 billion in quarterly sales for the first time, attributed to growth in solid-state drive (SSD) sales.

Moreover, Micron reported a significant shift to profitability, with its adjusted net income rising to $1.3 billion for the quarter, a substantial improvement from the adjusted net loss of $1.2 billion in the previous year’s quarter, surpassing analyst expectations.

Analyst Opinions

In comparison to its peers, Micron has outperformed Analog Devices (ADI), which saw gains of 9.8% in 2024 and 19.3% over the past year. Currently, among 27 analysts covering the stock, the consensus rating is a “Strong Buy.” As of now, MU is trading below the average price target of $146.22.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.