Key Stats for Micron Stock
- Price Change for $MU stock: 1%
- Current Share Price: $167
- 52-Week High: $170
- $MU Stock Price Target: $164
What Happened?
Micron Technology (MU) stock is up 1% after reporting better-than-expected fourth-quarter results and providing robust guidance for the current quarter.
The memory chipmaker earned $3.03 per share on an adjusted basis, beating the $2.86 consensus estimate, while revenue of $11.32 billion exceeded estimates of $11.16 billion.
Micron guided first-quarter revenue to $12.5 billion versus the $11.94 billion consensus estimate, representing continued acceleration in the AI-driven memory boom.
The company also projected adjusted gross margins of 51.5%, far above the 45.9% estimate, as pricing conditions continue to improve across both DRAM and NAND markets.
The standout performance came from high-bandwidth memory (HBM), where Micron’s revenue reached nearly $2 billion in the quarter, implying an annualized run rate of $8 billion.
CEO Sanjay Mehrotra announced Micron expects to sell out all HBM production for calendar 2026, with HBM4 pricing “significantly higher” than current HBM3E levels due to superior performance specifications.
See analysts’ growth forecasts and price targets for Micron stock (It’s free!) >>>
What the Market Is Telling Us About Micron Stock
The market’s enthusiastic reaction reflects validation of Micron’s transformation from a cyclical commodity supplier to a critical enabler of AI infrastructure.
The company’s gross margins have surpassed 50% for the first time since 2017-2018, with management expecting further sequential improvement, which demonstrates a structural shift toward higher-value products.
Micron’s unique position as the only U.S.-based memory manufacturer provides additional strategic value amid ongoing geopolitical tensions and domestic semiconductor initiatives.
Micron’s $6.2 billion CHIPS Act subsidy supports its Idaho manufacturing expansion, which is not expected to begin meaningful production until late 2027, highlighting the extended timeline for new supply additions that should support continued pricing power.
The combination of structural supply constraints, AI-driven demand growth, and Micron’s leading technology position in next-generation HBM products positions it to benefit from a multi-year memory upcycle driven by the expansion of artificial intelligence infrastructure.
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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!
