MU Stock Recent News

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.

When it comes to artificial intelligence (AI) chips, most investors typically think about the graphics processing units (GPUs) designed by Nvidia (NVDA 0.35%) and Advanced Micro Devices (AMD -1.22%). GPU sales have soared for both companies over the last couple of years, and in Nvidia's case, they have added trillions of dollars to its market capitalization.

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.

Micron's strong 3Q FY2025 results and upbeat 4Q guidance point to accelerating growth and margin expansion, fueled by surging AI-driven demand for HBM and DRAM. Management raised its FY2025 DRAM bit growth outlook to the high-teens percentage range, up from mid-teens last quarter. Current AI capex and hyperscaler demand support a bullish outlook through FY2026, with HBM growth set to outpace DRAM next year.

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Micron Technology, Inc. delivered record Q3 earnings, driven by surging DRAM and AI-related HBM demand. But, the stock already doubled since April lows, so the market didn't seem to react to the positives of this earnings report. This makes me think the near-term upside is limited from current levels and potential downside from tariff panic buying isn't priced in.

Micron (MU) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.

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.

Micron Technology (NASDAQ: MU) announced impressive Q3 FY'25 results (August fiscal year). Revenue increased by 37% year-over-year, reaching $9.3 billion, surpassing expectations, while adjusted earnings were reported at $1.91, significantly higher than the $1.60 consensus.