Update shared on04 Sep 2025
Analysts remain bullish on Micron due to strong DRAM pricing, a shift toward higher-value HBM products, robust AI-driven demand, and improved guidance, but some caution persists regarding NAND and costs; the consensus analyst price target is unchanged at $150.57.
Analyst Commentary
- Bullish analysts highlight Micron’s significantly better-than-expected Q4 guidance, citing strong DRAM pricing, favorable valuation, and robust long-term growth prospects due to secular AI and data center demand.
- Multiple price target increases are driven by a strong mix shift toward high-bandwidth memory (HBM), resulting in higher selling prices, gross margin leverage, and outperformance in generative AI-related markets.
- Improved revenue, gross margin, and EPS guidance—especially on DRAM—reflect better execution, persistent inventory tightness, and a “stronger for longer” upswing in the DRAM cycle.
- Analysts see strong demand in data center/enterprise segments, ongoing recovery in consumer and other end markets, and Micron’s ability to sell out future HBM supply as key positive drivers.
- Some moderate caution remains around NAND pricing certainty and startup cost headwinds, with most bearish sentiment constrained to near-term uncertainties rather than long-term fundamentals.
What's in the News
- The White House is not seeking equity stakes in Micron (MU) or TSMC (TSM) in connection with CHIPS Act funding, distinguishing these firms from smaller grant recipients (Wall Street Journal, 2025-08-22).
- The Trump administration is considering reallocating at least $2B from CHIPS Act semiconductor funding to support critical minerals projects, potentially impacting funds available to companies like Micron (Reuters, 2025-08-21).
- U.S. Commerce Secretary Howard Lutnick is evaluating taking non-voting equity stakes in semiconductor companies, including Micron, in exchange for CHIPS Act grants (Reuters, 2025-08-20).
- The U.S. has temporarily frozen tech export restrictions on China, impacting semiconductor companies such as Micron, to support ongoing trade negotiations (Financial Times, 2025-07-29).
- President Trump signaled that tariffs on semiconductors are likely to be imposed soon, adding uncertainty for Micron and the broader chip sector (Bloomberg, 2025-07-16).
Valuation Changes
Summary of Valuation Changes for Micron Technology
- The Consensus Analyst Price Target remained effectively unchanged, at $150.57.
- The Future P/E for Micron Technology remained effectively unchanged, at 17.21x.
- The Discount Rate for Micron Technology remained effectively unchanged, at 10.57%.
Disclaimer
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