Micron Technology (MU) stock fell more than 5% out of the gate Thursday as the memory chipmaker's disappointing fiscal fourth-quarter revenue outlook overshadows its fiscal third-quarter top- and bottom-line beats.
In the quarter ended May 30, Micron's revenue surged 81.5% year-over-year to $6.8 billion, driven by "robust AI-driven demand for data center products." Its earnings per share (EPS) came in at 62 cents compared with a loss of $1.43 in the year-ago period.
"We are gaining share in high-margin products like High Bandwidth Memory (HBM), and our data center solid-state-drives (SSD) revenue hit a record high, demonstrating the strength of our AI product portfolio across DRAM and NAND," Micron CEO Sanjay Mehrotra said in a statement.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results handily beat analysts' expectations. According to CNBC, Wall Street was anticipating revenue of $6.7 billion and earnings of 51 cents per share.
However, sentiment turned negative toward Micron after the company provided the outlook for its fiscal fourth quarter, which didn't blow away analysts' expectations. MU anticipates revenue of approximately $7.6 billion, plus or minus $200 million, and EPS of roughly $1.08, give or take 8 cents per share. Analysts are expecting revenue of $7.6 billion and earnings of $1.05 per share.
Still, Mehrotra says the company is excited "about the expanding AI-driven opportunities ahead, and are well positioned to deliver a substantial revenue record in fiscal 2025."
Is Micron stock a buy, sell or hold?
Wall Street is very bullish on the tech stock and for good reason. Indeed, MU has been one of the best semiconductor stocks so far this year, up 58% even with today's decline. According to S&P Global Market Intelligence, the average analyst target price for MU stock is $157.23, representing implied upside of more than 16% to current levels. Additionally, the consensus recommendation is a Strong Buy.
Financial service firm Stifel is one of the more bullish outfits on Micron stock with a Buy rating and $165 price target.
"Though Micron's earnings and quarterly outlook exceeded consensus, expectations were clearly elevated ahead of Wednesday’s print, causing the stock to trade-off in the aftermarket," Stifel said in a note this morning. "Ultimately, we see the benefits to pricing and profitability in the interim outweighing other concerns and maintain our Buy rating."
Stifel's $165 price target represents implied upside of nearly 22% to current levels.
Related Content
-
Three Ways to Find Deals in Your Investments This YearLooking for ways to save because of tariffs? Don't forget to look for deals in your investments. Here are three expert tips for making a little extra this year.
-
How to Invest for a Fall Interest Rate Cut by the FedA lot can happen between now and then, but the probability the Fed cuts interest rates before the end of the year is better than 85%.
-
You Don't Have to Be Wealthy to Need a Wealth ManagerNavigating complex financial decisions is hard on your own, no matter how much money you have. A wealth manager can provide comprehensive financial planning, investment management, risk management and more.
-
Despite Tariffs, These Investment Experts Are Bullish on European EquitiesEuropean equities were one of the better-performing investments during the first half of 2025. They could be a good long-term prospect for U.S. investors needing to diversify, according to these investment managers.
-
Stocks Are Up and Down on Fed Day: Stock Market TodayIn another sign of changing times, JPMorgan has partnered with Coinbase to enable cryptocurrency purchases with credit cards.
-
What Federal Interest Rates Mean for Your Grocery BillThe relationship between grocery prices and the Federal Reserve has plenty of back-and-forth. Understand how they interplay.
-
5 Undervalued Stocks to Buy NowThere are plenty of high-quality undervalued stocks to buy right now, you just need to know where to look. Here, we highlight five of our top picks.
-
How Do You Know You Are Ready for a Gray Divorce? 15 Yes-or-No QuestionsAs people 50 and older get more gray divorces, many splits are initiated by women who want a new path. Answer these 15 questions to see if you might need to think about how you should move forward.
