
Micron Technology (MU) Stock Forecast & Price Target
Micron Technology (MU) Analyst Ratings
Bulls say
Micron Technology's outlook is supported by a significant increase in the total addressable market (TAM) for High Bandwidth Memory (HBM), projected to reach $35 billion by 2025 due to strong shipment volumes and average selling price (ASP) increases. Additionally, there are signs of improving demand and inventory levels across key segments such as servers, SSDs, mobile devices, and PCs. Despite facing challenges in gross margins linked to unfavorable NAND market conditions and production ramp-up costs, the overall growth trajectory in HBM revenues, including a quarterly growth of over 50% to exceed one billion dollars, underscores a positive market sentiment for the company moving forward.
Bears say
Micron Technology is experiencing significant margin pressure, with management guiding for a non-GAAP gross margin decline to 36.5%, which is below both internal and market estimates. This decline in margin is attributed to weaker average selling prices and an unfavorable shift towards a higher consumer mix of NAND products, further exacerbated by underutilization and associated startup costs. Despite effective capital expenditure management aimed at improving free cash flow, the persistent cost declines in DRAM and NAND in line with competitors indicate a challenging pricing environment that may undermine profitability moving forward.
This aggregate rating is based on analysts' research of Micron Technology and is not a guaranteed prediction by Public.com or investment advice.
Micron Technology (MU) Analyst Forecast & Price Prediction
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