Micron Technology, Inc. Stock Forum (MIL:1MU)

yesterday

Dont miss our new analysis

2 days ago

tough week, but i managed to see some profit. Next week, hopefully, will be better. Time for some beer 🍺 mixed with V8, salt, pepper, and Texas Pete.
I hope everyone has a great weekend. Cheers. 🍻

Sam9394

2 days ago

I have a feeling that this might be the last good dip to buy for a while, but that’s just my opinion. Same with

CloudCharts

3 days ago

- Micron Technology (MU) — Strong Buy

Price target: $250 (12–18 month horizon) — Bargain; buy the computer-generated dips.

Investment thesis — quick take

Micron just delivered a blowout quarterly print and raised near-term guidance driven by surging AI/data-center demand and accelerating HBM (high-bandwidth memory) traction. Management’s guidance and product roadmap (HBM4 ramp) argue for sustained above-market revenue growth and margin expansion; investors who buy into today’s weakness will likely be rewarded as the market re-rates Micron toward peer-like multiples given Micron’s growth trajectory. We set a $250 target based on conservative growth and multiple convergence vs. large-cap semiconductor/AI beneficiaries.

What happened (the facts)

Blowout results: Micron reported record fiscal Q4 revenue and raised FY guidance; management forecasted sequential revenue growth and gross margins above 50% driven by AI data-center demand.

Strong demand drivers: HBM sales surged and Micron emphasized AI/cloud customers as the primary demand engine — HBM is becoming a meaningful, higher-margin mix shift. Management noted multiple HBM customers and a clear HBM4 ramp plan.

Street reaction: Despite the beat and upbeat guidance, the stock has traded off modestly on profit-taking and a high bar of expectations — creating a tactical buying opportunity in our view. Several firms already raised price targets (some up to ~$200) after the print.

Why Micron’s earnings are “way above / in line with” NVDA, MSFT, AVGO, AAPL

Absolute growth vs. peers: Micron’s recent quarter and forward commentary show revenue and operating momentum that is AI-driven, similar in fundamental driver to Nvidia (AI compute demand) and crucial to server/cloud stacks where Microsoft, Broadcom, and Apple also participate as customers/partners. Micron’s revenue growth and margin expansion tied to AI memory (HBM/DRAM) are comparable in directional strength to the AI beneficiaries among semiconductors and hyperscalers — but Micron still trades at a meaningful discount to those companies’ multiples.

Mix and margin improvement: Unlike general-purpose memory cycles, HBM and cloud-centric DRAM sell at premium pricing and carry higher gross margins — a structural change that pressures traditional memory cyclicality and aligns Micron’s profit profile more with high-growth semiconductor peers (e.g., Broadcom) than a commodity memory supplier of old. Management’s statements and the quarter’s margin guidance support this upgrade.

Valuation dislocation: Peer group (NVDA, MSFT, AVGO, AAPL) trade at premium multiples justified by sustainable growth. Micron is showing that same sustainable, AI-linked growth but without the premium multiple — creating opportunity if the market accepts Micron as a durable AI supplier. Market reaction and multiple compression post-run leave upside if multiple re-rating occurs.

Valuation — why $250?

Base inputs (conservative): use management’s guidance and consensus-upside for FY metrics (record revenue, strong gross margins >50% in near term). We assume continued HBM and data-center cadence, modest NAND upside, and margin normalization above historical averages. (Sources: Micron press release & analyst updates.)

Actionable recommendation

Rating: STRONG BUY. We see Micron as undervalued given AI-driven revenue/margin inflection.

Bottom line

Micron’s Q4 beat and bullish guidance materially re-frame the company from cyclical memory vendor to a core AI-data-center supplier with sustained growth and margin expansion potential. The market’s modest pullback after the print creates a window to buy; if Micron executes on HBM and the cloud narrative, the stock’s valuation should re-rate toward our $250 target. We recommend buying the dips.

Disclaimer: This is market commentary and a model-based price target, not individualized investment advice. Markets are volatile; do your own diligence.