Got a problem with your memory? Micron Technology (MU) wants your business.
The semiconductor stalwart is one of the three largest makers of DRAM memory chips, used by companies such as Nvidia, Microsoft, Apple and Dell.
Nvidia is using Micron’s chips in its Blackwell family of graphics-processing units.
The company produces high-bandwidth memory, an advanced high-performance chip that plays a crucial role in developing complex AI applications.
On March 20 Micron reported fiscal-second-quarter earnings and President and CEO Sanjay Mehrotra told analysts that the Boise, Idaho, company “is in the best competitive position in our history, and we are achieving share gains across high-margin product categories in our industry.”
The shares were down 8.8% at last check due to a disappointing margin forecast.
Micron Technology CEO Sanjay Mehrotra said the company is ‘in the best competitive position in our history.’ (Photo: Mandel Ngan/AFP via Getty Images)
Micron CEO sees strong demand
“We are focused on growing [high-bandwidth memory] capacity in our existing manufacturing facilities to meet requirements through 2026,” he said during the earnings call. “In January, we broke ground on an HBM advanced packaging facility in Singapore.
“This investment allows us to meaningfully expand our total advanced packaging capacity beginning in calendar 2027,” he added.
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Mehrotra said that large hyperscale customers — the major providers of cloud services and infrastructure — reiterated plans for strong year-over-year growth for their capital investments in calendar 2025.
“We are seeing strong demand for our HBM supply in 2026 and are in discussions with our customers on agreements for their calendar 2026 HBM demand,” he said. “We expect multibillion dollars in HBM revenue in fiscal 2025.”
Micron posted adjusted earnings of $1.56 a share on sales of $8.05 billion for the quarter ended Feb. 27.
Analysts polled by FactSet had expected Micron to earn $1.43 a share on sales of $7.9 billion. Micron earned an adjusted 42 cents a share on sales of $5.82 billion in the year-earlier quarter.
Looking ahead, Micron forecast adjusted earnings of $1.57 a share for the third quarter on sales of $8.8 billion. Analysts are calling for earnings of $1.52 a share on sales of $8.48 billion.
Micron shares are up nearly 12% since January and down 14.5% from a year ago.
Analysts weigh in on Micron
Wedbush analyst Matt Bryson boosted the investment firm’s price target on Micron to $130 from $125, while reiterating his outperform rating.
Bryson said Micron’s revenue exceeded its prior modeled estimates, while gross margins were somewhat thinner than its outlook. And the net was a slight miss on earnings but a better-than-expected earnings outlook, he said.
“But far more importantly we would highlight the company’s ability to roughly match prior expectations as better growth in HBM offset difficult end-market conditions for commodity products,” Bryson said.
He said HBM is “changing Micron’s economics.”
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“With HBM sold out through this year, and HBM requirements only looking to increase for the foreseeable future (on the back of both strong AI demand as well as increased bit equivalency metrics), we see HBM growth as a tailwind that looks set to persist into calendar 2026,” the analyst said.
JP Morgan slashed its price target on Micron to $135 from $145 and affirmed an overweight rating on the shares, according to The Fly.
Micron reported strong February-end-quarter revenue and EPS as sustained momentum and pricing power in HBM more than offset a higher mix of consumer in traditional DRAM and NAND, the firm said.
JP Morgan says the stock should continue to outperform through 2025 as the market continues to discount improving revenue, margins and earnings power. But JPM lowered its price target as it trimmed forward estimates.
Citi analyst Christopher Danely lowered its price target on Micron to $120 from $150 and maintained a buy rating.
Micron reported “decent results” and guided above consensus, driven by higher DRAM sales, Danely said.
Margins remain thinner than expected, though the analyst said DRAM pricing should improve beginning in Q2 and the DRAM market will recover given supply/demand dynamics.
But he said Micron’s gross margins could peak below previous upturns. He lowered his price target to reflect a lower multiple given that view.
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