Micron Technology Surges 18% on Strong Q2 Results
Micron Technology stock is making waves in the market, surging as much as 18% following a stellar fiscal second-quarter performance. The company reported revenue and profits that exceeded Wall Street estimates, in addition to issuing better-than-expected revenue guidance for the coming quarter.
Analysts are bullish on Micron’s outlook, believing there is still more room for growth. The company expects revenue of $6.6 billion in the third quarter ending in May, surpassing analyst forecasts of $6.2 billion.
Micron’s success can be attributed to its role in providing flash storage and memory for a wide range of devices, including computers, cellphones, and data centers. With the increasing demand for artificial intelligence technologies, Micron is at the forefront of the market due to its contributions to powering AI software and projects.
Looking ahead, Citigroup analyst Christopher Danely is optimistic about Micron’s potential. He believes the company can ship $700 million worth of high bandwidth memory interfaces in 2024, and anticipates a rise in demand for dynamic random access memory (DRAM) chips. Danely points to Micron’s peers, Broadcom and AMD, as examples of the potential for Micron’s stock value to grow.
Citi has maintained a buy rating on Micron with a price target of $150 per share, implying nearly 60% upside from its previous closing price. The company also raised its revenue and earnings estimates for the full year of 2024.
Goldman Sachs analyst Toshiya Hari echoed this positive sentiment, stating that recent downturns in the memory market were likely due to one-time factors. Hari believes that the overall DRAM industry fundamentals will rebound, benefitting companies like Micron.
Goldman Sachs reiterated its buy rating on Micron and raised its 12-month price target to $122 per share. The future looks bright for Micron Technology as it continues to excel in the technology sector and capture opportunities in the AI market.
Source link
