Micron (MU) Gets $500 Target as AI Drives DRAM and NAND Demand

Micron’s November 4th results and February 4th guidance was good supra consensus, Rosenblatt noted. The recently negotiated DRAM and NAND Flash prices combined with continued outgo declines person been cardinal factors driving performance.

This has led the absorption to usher February 4th Non-GAAP GM to a grounds precocious of 68%, with request anticipated to outstrip proviso into CY27. The outlook reflects Micron’s strengthening presumption successful representation and retention markets.

Overall, the steadfast sees grounds gross margins and choky proviso starring to semipermanent upside.

“We are moderating the gross maturation and gross borderline enlargement going into CY27 considering semipermanent agreements volition apt power ASP increases. Despite this cautious view, we estimation $36 successful FY27E earnings. Using the aforesaid 14x FY27 EPS, we determination our 12-month terms people to $500 (from $300). We proceed recommending MU for the expanding value of representation and retention successful the Age of AI.”

Micron Technology, Inc. (NASDAQ:MU) develops and sells representation and retention products for information centers, mobile devices, and assorted industries worldwide.

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