On Wednesday, Rosenblatt Securities maintained its Buy rating on shares of Micron Technology (NASDAQ:MU), with a price target of $250.00. The firm's analysis suggests that Micron, currently valued at over $120 billion, is poised for modest outperformance and upward revision.
According to InvestingPro data, the company has shown strong momentum with a 33.7% return over the past year, driven by advanced memory applications in artificial intelligence (AI), High Bandwidth (NASDAQ:BAND) Memory (HBM), and data centers, while also noting a cyclical recovery in other sectors.
The firm anticipates that Micron will navigate through the first half of 2025, which is expected to involve a reduction of DRAM inventories in the smartphone and PC segments. These markets are projected to balance out and subsequently enter a shortage phase.
As a prominent player in the Semiconductors & Semiconductor Equipment industry with an "FAIR" overall financial health score on InvestingPro, Micron appears well-positioned for this transition. This shift is attributed to controlled capital expenditure in the industry and the introduction of HBM, which is likely to decrease the supply of commodity DRAM.
Rosenblatt highlighted Micron's potential to gain a greater share of the DRAM market, especially in the strategic HBM segment, due to ongoing power and thermal challenges with Samsung (KS:005930)'s HBM3E products. The firm believes that these issues will be difficult to resolve as the industry advances towards HBM4.
The $250 price target is based on a mid-teens price-to-earnings (P/E) multiple applied to the firm's forecasted fiscal year 2026 non-GAAP earnings per share (EPS). Currently trading at a P/E ratio of 154.6, with analysts expecting significant earnings growth, Rosenblatt has identified Micron as its top cyclical semiconductor pick. For deeper insights into Micron's valuation and growth prospects, including 12+ additional ProTips and comprehensive financial analysis, visit InvestingPro.
In other recent news, Micron Technology has been the focus of several analyst firms. Bernstein SocGen Group revised its price target for Micron shares from $140 to $120, maintaining an Outperform rating despite the cut. This adjustment reflects investor skepticism about Micron's growth momentum in CY2026. The firm anticipates a 15% expansion in book value for the company.
Wolfe Research and Raymond (NS:RYMD) James also maintain a positive outlook for Micron, citing its leadership in memory technology and expected market share gains in High Bandwidth Memory (HBM) by 2025. Susquehanna International Group maintains a Positive rating on Micron shares, highlighting the company's potential earnings boost from increased market share in HBM and DDR5.
In recent developments, Micron has secured a substantial subsidy of over $6.1 billion from the U.S. Department of Commerce. The company also debuted its 6550 ION NVMe™ SSD, a 60TB data center SSD, the first of its kind to support E3.S and PCIe Gen5 standards. These developments, along with the analysts' insights, underscore the potential for Micron's continued growth in the semiconductor industry.
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