- Micron Technology’s (MU) stock dipped nearly 2% to $101.12 in early Tuesday trading from $103.11, with Citi’s Christopher Danely expecting a guidance miss in Thursday’s fiscal Q2 results due to NAND issues (26% of Q1 sales), despite maintaining a ‘Buy’ rating and $150 target.
- Danely sees DDR5 memory pricing up 8% this year – the biggest jump since Q1 2024 – forecasting a DRAM recovery in Q2 2025, while UBS’s Timothy Arcuri raised his price target to $130 from $125, reflecting optimism in pricing trends.
- Analysts highlight Micron’s AI-driven high-bandwidth memory and DRAM supply-demand dynamics as growth drivers, with Danely asserting the “upturn is still intact,” even as near-term consumer mix and NAND challenges loom.
Micron Technology’s (MU) shares, slipping nearly 2% to $101.12 in early Tuesday trading from a previous close of $103.11, are navigating a complex landscape as the company approaches its fiscal second-quarter earnings report on Thursday. Citi (C) analyst Christopher Danely, in a Monday note, held firm on his ‘Buy’ rating and $150 price target – implying a robust 48% upside – despite anticipating a guidance miss in the upcoming results. He expects Micron to deliver solid performance but foresees the outlook falling short of consensus, pinned to a tougher consumer mix and underutilization charges tied to NAND flash memory, which made up 26% of first-quarter sales.
The broader outlook, however, carries a spark of optimism rooted in memory market dynamics. Danely highlighted an 8% year-to-date rise in mainstream DDR5 memory spot pricing – the steepest climb since the first quarter of 2024 – as a signal of improving conditions. He ties this to a projected DRAM pricing recovery starting in the second quarter of 2025, bolstered by supply-demand shifts. Adding to the positive sentiment, UBS analyst Timothy Arcuri on Monday raised his price target to $130 from $125, maintaining a ‘Buy’ rating, driven by a brighter pricing forecast. This dual analyst confidence underscores Micron’s potential, particularly in high-bandwidth memory for AI applications, a segment poised to capitalize on growing demand.
Micron’s path forward hinges on balancing near-term pressures with long-term gains. The NAND underutilization charges reflect a strategic pivot away from oversupply, a move echoed across the industry as competitors like SK Hynix and Kioxia trim production. Meanwhile, the DDR5 pricing uptick aligns with Micron’s strengths in advanced memory solutions, positioning it to ride an anticipated DRAM upswing in 2025. Danely’s assertion that the “upturn is still intact and upside is coming” captures a forward-looking resilience, even as Thursday’s report may test investor patience with its expected guidance shortfall. With shares down early in the session but up nearly 21% year-to-date, the market seems to be weighing these crosscurrents, but the analyst endorsements signal a belief in Micron’s enduring value.
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