Shares of Micron Technology Inc (NASDAQ:MU) dipped in early trading on Wednesday despite a strong fiscal fourth quarter report.
Key Analyst Takeaways
- RBC Capital Markets analyst Matt Bryson reiterated an Outperform rating, while raising the price target from $200 to $220.
- KeyBanc Capital Markets analyst John Vinh maintained an Overweight rating, while lifting the price target from $160 to $215.
- Needham analyst Quinn Bolton reaffirmed a Buy rating, while taking the price target higher from $150 to $200.
- Rosenblatt Securities analyst Kevin Cassidy reiterated a Buy rating, while raising the price target from $150 to $200.
- BofA Securities analyst Vivek Arya maintained a Neutral rating, while lifting the price target from $140 to $180.
Check out other analyst stock ratings.
RBC Capital Markets: Micron delivered a beat on sales and margins, which resulted in "significantly" better-than-expected earnings. The company projected first-quarter margins higher than 50%, which no one was expecting, Bryson said.
Micron's pricing trends were even more favorable than the company "implicitly guided to," the analyst stated. "Management talked to DRAM likely being in undersupply through the whole of 2026," he further wrote.
KeyBanc Capital Markets: Micron generated $11.3 billion in revenue and earnings of $3.03 per share. It beat the consensus of $11.2 billion and $2.86 per share, respectively. DRAM pricing rose sequentially in the low-single-digit range, driven by tight industry supply and a favorable mix of high-broadband memory (HBM), Vinh said.
HBM revenues grew around 30% sequentially and are now approaching an annual run rate of $8 billion, the analyst stated. Management guided to first-quarter revenues and earnings of $12.5 billion and $3.75 per share. That’s higher than consensus estimates of $11.9 billion and $3.10 per share, respectively.
Needham: Micron Technology's HBM revenue grew 33% sequentially to reach a record high of around $2 billion, Bolton said. The company expects HBM market share to get close to its DRAM market share between July and September.
"The company indicated its HBM customer base has now increased to six customers and expects to sell out the remainder of its 2026 HBM supply within the next few months," the analyst wrote. The company guided to first-quarter non-GAAP gross margin at 51.5% at the midpoint, meaningfully higher than Street expectations of 45.7%, he further stated.
Rosenblatt Securities: Micron exceeded even its upwardly revised estimates and issued strong guidance for the November quarter, Cassidy said. The company's HBM innovations could "extend the current up-cycle beyond historical precedents," he added.
The company achieves gross margin expansion by the old-fashioned method: “selling higher-margin products, raising prices, and reducing costs," the analyst wrote. This trend is likely to continue through fiscal 2026. Constrained supply struggles to meet rising demand across all end markets, he added.
BofA Securities: Micron benefits from dual drivers: surging AI demand and the memory industry’s (abnormal) supply discipline. Both “pushed up pricing in traditional and new markets," Arya wrote. The growth of agentic AI is driving traditional server CPU sales, which is a positive read for Advanced Micro Devices Inc (NASDAQ:AMD).
Micron guided to gross margin of 51.5% for the first quarter of 2026 and indicated that it expects margins to improve further in the seasonally softer second quarter, which suggests continued pricing strength, the analyst stated. Samsung Electronics Co Ltd's (OTC:SSNLF) entry into the HBM market could impact Micro's market share and pricing in 2026, he said.
Price Action
Shares of Micron Technology had declined by 2.08% to $162.95 at the time of publication on Wednesday.
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