Key Stats for Micron Stock
- Price change for Micron stock in the last 6 months: 72%
- $MU Stock Price as of Oct. 26: $904
- 52-Week High: $1255
- $MU Stock Price Target: $1562
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What Happened?
Bank of America kept its buy rating on Micron Technology (MU) after meeting with company executives in New York and Boston last week.
The firm pointed to Micron’s strong position in memory technology and cited better supply visibility through 2027 and 2028.
Management said today’s memory specs reflect a shortage of memory, which is not limited by compute, land, or power.
GPU makers and data center operators are working with the chip packaging capacity they have.
Micron is also locking in long-term deals with customers, and these agreements now run about five years beyond 2030, with talks for 2031 underway.
About 35% of sales are expected to fall under these agreements, and the target is 50% by 2030.
Micron said customer financial commitments have grown to $32 billion.
On technology, Micron can support HBM stacks from 4-high to 16-high and also builds custom HBM versions for specific uses.
In DRAM, it expects volume production of its next node in the second half of 2027. In NAND, its next generation targets more than 400 layers by the end of 2027.
Micron also plans to buy back more shares starting December 9. Bank of America estimates free cash flow of $150 billion to $200 billion a year in 2027 and 2028.
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What the Market Is Telling Us About Micron Stock
The message from Bank of America is steady confidence, as Micron stock is being backed by tight supply and long-term customer contracts. Those contracts make future sales easier to predict.
Micron’s latest results show why.
- Fiscal Q4 revenue was $54.2 billion, up 379% from a year ago.
- Gross margin was 87%.
- Free cash flow was $33.2 billion.
- For the full year, revenue hit $133.2 billion.
Management expects the shortage to last and said supply and demand will be much tighter in 2027 and 2028 than in 2026.
It also said it has no line of sight to when the two will balance. More than 75% of its 2027 output is already committed.
The next quarter looks strong too, as Micron expects revenue of about $61.5 billion.
There are risks given that Micron plans to raise spending to add factory space.
Some customers may also trim memory use in their products. For Micron stock, the key question is how long tight supply keeps prices high.
Anyone following Micron stock should watch the buyback plans after December 9.
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So what is Micron stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
