Actions of Micron technology (NASDAQ:MU) rose 6.8% on Monday, at 1:41 pm ET.
The memory chip supplier will release its results on Wednesday, being one of the last big companies to report before the end of the year. Ahead of Wednesday’s news, one analyst reiterated his buy rating and bullish price target.
Today, citi group Sell-side analyst Christopher Danley posted a bullish note ahead of earnings, maintaining a buy rating and a $150 price target.
Although Micron shares rose earlier this year, they have sold off since July, amid skepticism about the non-artificial intelligence (AI) parts of the semiconductor sector. In his note on Monday, Danley admitted that he expects Micron to guide below consensus for the current quarter, due to weakness in the PC and smartphone markets.
However, Danley wrote: “While there is excess DRAM inventory in the PC and mobile phone end markets (collectively, 50% of [fiscal 2024] sales), this should disappear this spring and will be offset by the strength of the data center end market (35% of F24 sales).”
Micron has experienced crosscurrents, as its high-bandwidth DRAM memory products for artificial intelligence are seeing a surge in demand, even as other end markets languish in a recession that began in 2022. However, it appears that Danley believes that the good outweighs the bad for the balance of 2025.
Wall Street analysts expect Micron to generate $8.71 billion in revenue and $1.77 in adjusted earnings per share (EPS) on Wednesday. However, as most know, feedback and future guidance will also be as important or more important than the reported numbers.
While Danley believes the current quarterly guidance may be a little short of the $8.99 billion in revenue and $1.94 in earnings per share, any potential sell-off could be an opportunity to take advantage of. After all, demand for DRAM memory should continue to grow in the age of AI, and Micron has been doing well lately.
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