Micron Technology, Inc. (MU) on Q1 2021 Results - Earnings Call Transcript

Operator: Ladies and gentlemen, thank you for standing by. And welcome to Micron Technology's Fiscal First Quarter 2021 Financial Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session . It is now my pleasure to introduce Farhan Ahmad, Vice President Investor Relations. Farhan Ahmad: Thank you. And welcome to Micron Technology's fiscal first quarter 2021 financial conference call. On the call with me today are Sanjay Mehrotra, President and CEO; and Dave Zinsner, Chief Financial Officer. Today's call will be approximately 60 minutes in length. This call, including the audio and slides, is also being webcast from our Investor Relations Web site at investors.micron.com. In addition, our Web site contains the earnings press release and the prepared remarks filed a short while ago. Sanjay Mehrotra: Thank you, Farhan. Good afternoon and happy new year, everyone. Micron delivered strong revenue and earnings in the fiscal first quarter. I am proud of the Micron team for continuing our business momentum and putting Micron in a better technology and product position than ever before despite the ongoing challenges posed by the pandemic. We began shipping the industry’s most advanced NAND with 176 layers. And in DRAM, we made good progress on our 1-alpha node and are on track to begin volume production in the first half of calendar 2021. We believe DRAM is past the bottom of the industry cycle and expect improving trends through calendar 2021 as the digitization of the global economy continues, fueled by artificial intelligence, cloud, 5G and the intelligent edge, including smart vehicles. Against this backdrop, Micron is poised to emerge stronger and we are excited about our future. I will start with a quick update on our manufacturing operations. In early December, two separate events affected our Taiwan DRAM operations. The first event was a power outage at our Taoyuan facility, which occurred on December 3rd, the last day of our fiscal first quarter. The second event, a 6.7-magnitude earthquake off the northeast coast of Taiwan occurred on December 10th. The earthquake was felt at both our Taoyuan and Taichung locations. The investments we have made over the last few years in facilities’ redundancy and cleanroom control substantially mitigated the impact of these two events. However, these disruptions have reduced our available fiscal second quarter DRAM supply and negatively influenced our costs in the short term. The expected impact of these events is factored into our outlook. Dave Zinsner: Thanks Sanjay. Micron delivered very strong fiscal first quarter results with revenues and earnings coming in well above the guidance ranges provided in our last earnings call. We saw an improving business environment through the quarter, and demand and pricing were better than expected for both DRAM and NAND. Sanjay Mehrotra: Thank you, Dave. Over the last year, Micron delivered strong performance in the face of significant challenges from COVID. I am thankful to the Micron team whose tenacity and resilience enabled us to navigate this challenging period and maintain production at normal levels while continuing to advance our technology and product portfolio. Micron is poised to emerge stronger in calendar 2021 as the world recovers from the pandemic. We are confident in our roadmap to further enhance our competitive position while exercising supply discipline. We are in a better position than ever before, and this has been recognized by our customers. Recently, Micron received supplier awards from multiple customers, including from tier 1 China smartphone OEMs. We also continue to make great strides in advancing our corporate responsibility agenda. In November, Micron published our fiscal year annual diversity, equality and inclusion report, detailing our progress over the year and our commitments for fiscal year 21. In 2020, we increased our female board representation and also made investments to improve representation of all underrepresented groups, including Blacks and Latinx in technical and leadership roles. We expanded our pay equity initiative beyond gender to also include other underrepresented groups and to consider total compensation across pay and equity awards. We are working with industry organizations to establish best practices in supplier diversity and to support the inclusion and competitiveness of diverse suppliers in the semiconductor industry. And finally, we leveraged the power of Micron's influence in the communities where we live and work to advocate for greater social justice and safety globally. We are also proud to report that in November, we were added to the Dow Jones Sustainability Index, joining the ranks of the most sustainable American companies. We aim to build on this recognition as we advance on our sustainability goals this year. Thank you. And now we will open the call for questions. Operator: . Our first question comes from the line of Chris Danely with Citigroup. Chris Danely: In terms of what's impacting you, I guess you can sort of control or fix the power outage and the earthquake, but you also mentioned that there's shortages of nonmemory components out there that are impacting you as well or impacting the memory industry. Can you maybe quantify those and is that issue getting any better or could it get any worse? And could this I guess hinder any sort of upturn in DRAM this year? Sanjay Mehrotra: So let me be clear that when we're referring to nonmemory component shortages, we were referring to those and our end markets, our customers experiencing certain end market shortages. And yes, without those nonmemory component shortages, yes, the overall demand could have been even somewhat higher. And these nonmemory component shortages that some of our customers are experiencing, they relate to general tightness in the foundry space, logic, 8 inch, 12 inch nodes, there's some of our customers and there is end market hardware are experiencing certain shortages, so that's what we are referring to. Of course with respect to our supply chain, this is an area given some of the foundry shortages that are existing today, we are continuing to manage our supply chain today. We do not see for this quarter any specific shortages in terms of our ability to supply any nonmemory shortages with respect to our ability to supply product to our customers. Of course as we highlighted in our script, we do see certain shortages in memory, particularly in DRAM across several parts of the market. And with respect to our supply chain aspect, we have factored those in the outlook that we have provided. And the supply chain has really excellent operations team and we continue to work with our suppliers, with our partners to make the best assessment in terms of managing our own supply chain. So again, to be clear, we were not pointing to any nonmemory component shortages in this quarter for our own manufacturing supply chain, we were referring more to our customers’ end markets where they're experiencing certain nonmemory component shortages. Of course from the point of view of our own supply chain, we continue to monitor some of the trends that are there in the tech supply chain, there's certain parts of the supply chains running tight, we continue to monitor those in terms of any impact on our business, as well as work closely with our customers to understand those demand trends. Operator: And our next question comes from the line of John Pitzer with Credit Suisse. John Pitzer: Sanjay, I wanted to go back to your comments you made about your expectation for DRAM demand, both this year of high-teens and longer term of mid to high-teens. I'm just kind of curious if you can give us a little bit more insight as to how you're building up those models. And I'll push back a little bit because we've got a very strong gaming console this year. We've got the move to 5G, as Ice Lake grants, we're going to go from six to eight channels in the server market. It seems like the risk to that forecast on demand is for the upside this year. And then conversely, as you think about servers as a percent of your DRAM business over the last five years, it's gone from 15 to 30 approximately. And given what we see around DRAM density going into next generation compute, especially around AI workloads, I would think that the historic 20% bit growth in DRAM demand should be something the industry should be able to maintain. I'm just kind of curious as to why you don't believe that? Sanjay Mehrotra: So John, I mean we're giving you our best estimates with respect to demand assessment. And you would absolutely right to point out that the end market demands are certainly the demand trends are strong. The trends, the secular trends of AI, 5G, cloud and intelligent edge, including smart vehicles is absolutely strong growth driver for memory and storage in the years to come. Keep in mind for calendar year 2020, particularly in the late part of calendar year 2020, the demand went up strongly. So when we look at DRAM demand growth for calendar year 2020, we said that it is somewhat above 20% in calendar year '20 on a year-over-year basis. So that's what has really adjusting some of our assessment for calendar year '21 in terms of high-teens for the DRAM demand growth. In terms of how we come about these numbers we are always working closely with our customers, our market intelligence team is assessing the end market demand trends. What we see is over the course of next few years for DRAM that stronger than the average of the market would be mobile. 5G will be a long-term growth driver. In 2021, we do expect that 5G phones will be twice of what they were in calendar year 2020, going from 250 million units to 500 million units. And no question that average DRAM content in the 5G phones increases substantially as well, with minimum DRAM in 5G smartphones being 6 gigabyte. Yes, graphics, gaming consoles, new gaming consoles, new gaming graphics cards, also a strong driver and stronger than the average in 2021 of the DRAM growth. So I would be expect to be healthy and strong in 2021 as well based on all the reports that you have seen from various cloud suppliers about their CapEx investments and their workloads moving more toward AI and machine learning driving greater demand. And also certainly in 2021 auto unit sales will be demanding. And all of these and auto of course as vehicles are becoming more intelligent also driving greater content. All of these markets that I just mentioned, mobile, graphics, cloud, auto, we believe will grow stronger than the average of the market in 2021. Weaker than our average of the market would be the PC, although, PC overall will have unit growth in 2021 and Micron is well positioned with PC market as well. All I'm saying is that compared to the average of the industry, the DRAM bit growth in PC, I believe would be somewhat less than the average. And enterprise continues to be somewhat weak as well. And with the recovery rebound from the pandemic, we would expect during the course of the year, enterprise will recover as well. So these are all -- this is how we look at the end market in 2021. And this is what leads us particularly on the heels of a very strong above 20% bit growth in calendar year 2020, this is what leads us to project high teens kind of number for 2021. And when we look beyond that, as you noted we see that overall, DRAM CAGR, multiyear CAGR will be mid teens to high teens, some years maybe a little bit less, some years little bit more, but we are talking about the general CAGR there. And of course, we work closely with our customers, we work closely with understanding their demand and we also have annual supply agreements with several of our customers in various parts of the market. This is all what helps us build the intelligence that led us to the numbers. And John, we look at these numbers on a very regular basis, we assess them and of course we make adjustments as is necessary. And when we make adjustments in those projections, we of course make adjustments in our own expectations of how to manage our supply, because our goal is to manage our supply growth to be in line with the industry demand growth on a CAGR basis. Operator: And our next question comes from the line of C.J. Muse with Evercore. C.J. Muse: I guess I'd like to focus on cost downs, and you talked about down mid single digits in fiscal '21. And curious what kind of impact is embedded in that number for the disruption that you have seen in the last month? And then as you think about the ramp of 1-alpha and the 40% increase in bit output versus 1z, I would love to hear your thoughts on what kind of acceleration we should see in cost downs on the DRAM side beyond August, and when we really see that that uptick in savings through your 1-alpha ramp? Thank you. Sanjay Mehrotra: So on the cost downs for this year, as you mentioned, DRAM our expectation is that we see mid single digit cost downs this year that is our -- the cost impacts of the disruptions we experienced at the beginning of this quarter and late last quarter are embedded in that for sure. As you look into more, I should say as we progress through this year and into next year, 1-alpha will become more and more of our volume, that should bode well for our cost declines. And that’s one of the reasons why we think most of the cost decline we'll see in DRAM is really back end, back half of FY21 loaded. But we do expect to see that lead to further cost improvements in FY22 as well. Operator: Our next question comes from the line of Karl Ackerman with Cowen. Karl Ackerman: Maybe just to follow-up on CJ's question on DRAM cost decline, I'd like to move over to NAND. I appreciate the commentary on NAND cost improvement, which you called out low to mid teens. Is there a way to quantify the cost headwind from your transition to replacement gate? Because I would imagine that would be fairly sizable even in fiscal 2021. And I have a quick follow-up. Sanjay Mehrotra: So if you looked at last year, FY20, our cost declines were pretty negligible actually on NAND, because of the transition to the first generation of replacement gate. And really the only area where we got any sort of cost declines was in the change over and depreciation for NAND from five to seven years. As we move into the second generation, as we talked about this 176 layer has a particularly good cost structure. And so that will obviously be the big factor in terms of driving our cost declines in the low teens for this year. And again, we're going to be ramping this through the year and into next year. So we do feel like this will be a tailwind for our cost reductions as well. You didn't ask about this but on top of that, as we talked about on the call, we have good momentum in QLC that should be also a good tailwind for NAND costs as well. Karl Ackerman: You recognized a record of graphics DRAM quarter. Just kind of curious if graphics are now closer to 20% of this segment now. And then I guess, what sort of graphics DRAM demand are you seeing from GPU's used for cryptocurrency mining now that those currencies are now at all time high? Thank you. Sanjay Mehrotra: So as it relates to graphics that is in single digits overall as part of the industry as well as part of our business, if anything Micros actually leads in the graphic segment. With respect to our leading-edge, high performance power efficient DRAMs, our GDDR6, our GDDR6X products are very well-positioned with industry-leading specification in the graphics market. You know about GDDR6X that would be introduced with the PAM4 interface with twice the data transfer rate of the traditional DRAM memory before. So we are very proud of our leadership in the graphics market and certainly some part of our graphics market addresses the crypto mining applications as well. So that's embedded within our graphics revenue that we talked about. Basically some of the graphics cards that are built using GDDR6 and GDDR6X memory and other graphics memories that we supply are used in crypto mining applications. And crypto mining is just pointing to yet another continuing digitization of the economy, yet another application. It will be an important -- crypto currency will certainly be very important in the future and data mining needs there, crypto mining needs definitely need higher performance memory and Micron DRAM memory, Micron graphics products are well-positioned in that part of the market. Operator: Our next question comes from the line of Timothy Arcuri with UBS. Timothy Arcuri: I just had two. First, Sanjay, I wanted to double click on a prior question. So I understand that the demand was better during the late part of last year, but you also took down your forecast for this year. You were thinking of 20 and now you're up more like high-teens. So is there any component of digestion that you're fearing in mobile? Is that part of it too, or is it just the math that you have the same number of bits off of the higher base last year? And then I had a follow-up for Dave? Thanks. Sanjay Mehrotra: Yes, it's simply is, Tim, the later of what you just said that it is, the overall demand in 2021, we absolutely based on all the demand drivers that we see, that we describe in our script, we see really continued strong trend of demand in 2021. So it is what you said that 2020 has a higher base, because 2020 demand for DRAM went above 20% with that higher base compared to our prior expectations we have said that high-teens. Nonetheless, let there be no confusion, I mean 2021 overall DRAM demand trend across the board, across our market except for the enterprise where we have said enterprise resense will go away once the pandemic recovery takes fold fully on the economy. But whether it is auto, or it is smartphones, or it is cloud, or graphics, all of these end markets are pointing to strong demand of units, as well as strong demand for average content increases in 2021. So we are very excited about the demand opportunities. And keep in mind this is in the backdrop of CapEx management, disciplined CapEx management in the DRAM industry leading really to a supply environment where we think that the supply growth will be less than the industry demand growth in 2021, which steps up 2021 very nicely for the DRAM fundamentals. And that too with Micron's execution on technology and products continuing to strengthen our position there really very proud and excited about Micron's position with industry leading 1-alpha node now, which of course over the course of next selling quarters will be ramping into production. Timothy Arcuri: Dave, super quick, you didn't buyback any stock. And I know that you bring more cash than maybe you thought, because there was some working capital that was a little sort of worked against you. But why not give -- why not buyback stock given the improving outlook and obviously you're going to generate a lot of free cash flow during the fiscal back half of the year and your stock seems to be higher. So why not buyback any stock during fiscal Q1? Thanks. Dave Zinsner: Yes, I wouldn't read too much into it. I mean, if you look back over the last couple of years, I think we generated mid $4 billion levels of cash flow. And if you combine the converts and the buybacks, we spent probably closer to $4.7 billion or so on all of that. So we're definitely committed to the buyback. I would expect that our target is certainly just to generate free cash flow for the year. And I think you can expect us to remain committed in terms of returning at least or more than 50% of the free cash flow in the form of buybacks. But one other metric that we do to try to focus on is our net cash, our cash excess of our debt. And of course when we're not generating cash, when we're going to need cash, we eat into that a bit. And so I think just to be cautious, we wanted to make sure that we didn't eat into that net cash balance too much. But I'm not really reflective of any view on the stock price and we remain buyers overtime of the stock. Operator: And our next question comes from the line of Harlan Sur with JP Morgan. Harlan Sur: Your cloud business remained relatively healthy for calendar year '20, and I know that the team is expecting strength this year. But maybe more from a near-term perspective. Is that seem to be some growing indications that data center spending is going to start to reaccelerate here in the first half of this calendar year? On top of that, you have some of the new processor ramps that are coming to the market as well. Is the team seen the strength here in Q2 and in your orders or customer forecast? And then can you just give us an update on your DDR5 server products? Are you guys finished with qualification of these new products ahead of the second half adoption cycle? Sanjay Mehrotra: So with respect to cloud, yes, I mean, compared to our pre-COVID expectations, 2020 was a strong year for cloud and we did well. It was good for the industry and it was good for us as well. And yes, we definitely in 2021 as well continue to see strength in cloud, healthy business environment, healthy demand for cloud and continuing to work with our leading edge technology nodes as we get that ready into production with 1-alpha to get that qualified with our customers. So yes, cloud is long term secular demand driver for our industry. And again, it is the trend of AI and ML and the workloads that are requiring more memory. And you are absolutely right to note that companies are in 2021 introducing new CPU's and compute architectures, which will have more cores, which will have more channels, more DRAM attach rate. And with the end market appetite of need for more memory and the compute architectures and processes enabling greater DRAM attach rate in the servers, yes, this trend of more memory in the cloud environment will continue in this trend it's here to stay for considerable period of time even beyond 2021 timeframe. With respect to DDR5 that is really in the very early innings at this point. We are happy with our product position there. And the DDR5 will start picking up in terms of revenue opportunity later on in 2021. Harlan Sur: Thank you, Sanjay. Sanjay Mehrotra: We’re still in the qualification phases and there’s some revenue opportunity, but we are well position. Operator: Your next question comes from the line of Joe Moore with Morgan Stanley. Joe Moore: You guys continue to have this kind of negative leaning language on NAND, but you did inject that it could improve over the course of this year as people moderate their plans. It seems like the spending a fairly front half loaded and will moderate over the course of the year. What are you looking at there to sort of gauge whether that could get better or worse over the course of the year? And what's the -- am I right to sort of say that there's a little bit more optimism in the way that you phrase that? Sanjay Mehrotra: So certainly, NAND as traditionally has been the case, has elasticity that is an important part of the NAND market and even elasticity will continue to drive greater content in the various end market applications from the smartphones, to client notebook computers, to data center applications as well. And post the pandemic, we definitely expect that across the tech space, there will be release of pent up demand and that itself for a couple of years is going to drive increasing demand. Overall, when we look at 2021, we expect the demand growth in NAND to be approximately 30%. And our estimation is that supply perhaps somewhat above demand. And as elasticity kicks in, as the post COVID, post-pandemic and what demand environment builds up, as well as with greater focus from the industry in terms of management of the supply then we do believe that NAND fundamentals can strengthen. As far as Micron is concerned, I mean, we definitely are extremely focused on managing our supply growth with discipline. With our 176-layer NAND, we are very excited about our industry first position with this technology, but we manage our supply growth. And we expect that Micron supply -- overall, supply growth will be below the industry demand growth. And of course, we will supplement that with some of the inventory. So that in terms of our shipment growth in 2021, it will be in line with the industry demand growth expectations. But management of the supply, I think is an important factor in the industry in terms of overtime, returning to the healthier levels of the NAND industry along with elasticity and post-COVID NAND demand environment. Operator: Thank you. Your next question comes from the line of Toshiya Hari with Goldman Sachs. Toshiya Hari: I wanted to ask about CapEx and curious what the internal debate is today at Micron. Obviously, you guys didn't make any changes to your full year budget of $9 billion. But on the DRAM side, Sanjay, is it fair to say given the outlook over the next year or so if there is a bias internally, the bias to the upside from a spending perspective and conversely, on the NAND side have you -- to Joe's question, you've struck this cautionary note over the past couple of quarters. I realize you guys are being fairly prudent and focusing on your transition. But what would you need to see for you to turn conservative from a spending perspective in NAND? Thank you. Sanjay Mehrotra: So again, I think both for DRAM and for NAND, I think it is extremely important for us at Micron on an ongoing basis to stay disciplined with respect to supply growth, with respect to investments in CapEx to manage our supply grows to be in line with the industry demand growth expectations on a CAGR basis. And this is where our focus is, because that's the best way to generate ROI on our investment. We feel very good about our CapEx discipline and are focused on really driving profitability of the business through increasing our share, not just chasing bit share but increasing the profit share of the industry. And this is where are focused on differentiated solutions, both in NAND as well as in DRAM to strengthen our position, to strengthen the merits of the product portfolio is an important part of our strategy. But with respect to the CapEx discussions, it always is about really discipline on supply growth, staying in line with the demand growth. Operator: And our final question comes from the line of Mitch Steves with RBC Capital Markets. Mitch Steves: I wanted to double click, and while I’m sure you're going to get this on all these callbacks. So when you talk about the DRAM impact for Q2 -- the second quarter guide. Can you walk us through kind of the magnitude of the impact, i.e. how much of that 31% kind of midpoint is being negatively impacted by DRAM? Any sort of qualitative answer there would be very helpful. And then secondly as it relates to NAND, it sounds like you guys are a little bit cautious there. Can you maybe talk us through what you guys expect to see from the smartphone market given the fact that we're going to see kind of a elevated Q1 due to the change in product cycles, but then how should we think about kind of 2H, calendar year 2H smartphone demand as you guys see it right now? David Zinsner: So I'll take the first one and Sanjay will take the smartphone question. So yes, of course there was a cost impact, or will be a cost impact in the second quarter associated with this disruption. I wouldn't say it's a massive, it's measured in tens of basis points, not hundreds of basis points that we factored in the quarter. Sanjay Mehrotra: And with respect to smartphone content growth, certainly with 5G the average content continue to increase in smartphones. We have talked about in the past that how DRAM content in smartphones is 8 gigabyte to 12 to 16 gigabyte, even in certain phones and average content increase in the smartphone market will be in the double digit. And again, in the smartphone, I think it's important to understand that not only is it about the 5G number of units increasing, more than doubling calendar year '20 or calendar year '21 going from 250 million 5G smartphones in '20 to 500 million plus in 2021. But the average content of DRAM is increasing in these 5G phones as well. So that's the multiplicative impact with respect to the DRAM demand growth in the smartphone market. And if you look at the calendar of DRAM content over the course of next three years or so, that CAGR of average content growth in the smartphone market is in the double digits range. So smartphone will continue to be a strong market and we are very well positioned with our NAND and DRAM combination to address the growing opportunities in the smartphone markets. We mentioned in the earnings call prepared remarks that our MCP revenues, MCPs with multi chip packages that include DRAM as well as NAND we are extremely well positioned being the manufacturer of both DRAM and NAND that MCP revenue hit a record in our fiscal Q1 timeframe. So smartphones, continues to be a strong and the largest market for DRAM and NAND and we are really well positioned there and quite excited about the opportunities here, including introduction of our LPGDDR5 and uMCP5 industry leading solutions. Operator: Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for participating and you may now disconnect.
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Micron Technology, Inc. (NASDAQ:MU) Surpasses Earnings Expectations

  • Micron Technology, Inc. (NASDAQ:MU) reported an EPS of $3.03, beating the estimated $2.86.
  • Despite a slight miss in revenue expectations, Micron showcased significant year-over-year earnings growth.
  • The company's financial performance is bolstered by growth in AI data centers, indicating strong investor confidence.

Micron Technology, Inc. (NASDAQ:MU) is a leading player in the semiconductor industry, specializing in memory and storage solutions. The company competes with other tech giants like Samsung and SK Hynix. On September 23, 2025, Micron reported earnings per share (EPS) of $3.03, surpassing the estimated $2.86, showcasing its strong financial performance.

Despite generating a revenue of $11.32 billion, which was slightly below the estimated $11.83 billion, Micron's earnings per share marked a significant increase from the $1.18 reported in the same quarter last year. This growth highlights Micron's ability to enhance profitability, even when revenue expectations are not fully met.

Micron's robust performance in the fiscal fourth quarter was driven by growth in AI data centers, as highlighted by Investors.com. This growth contributed to a surge in Micron's stock during extended trading, reflecting investor confidence in the company's strategic direction and market position.

The company's financial metrics provide further insight into its valuation and operational efficiency. With a price-to-earnings (P/E) ratio of approximately 29.89, investors are willing to pay a premium for Micron's earnings. The price-to-sales ratio of about 5.51 and enterprise value to sales ratio of 5.68 indicate a strong valuation relative to revenue.

Micron's enterprise value to operating cash flow ratio of 12.65 suggests efficient cash generation from operations. The earnings yield of 3.35% offers a perspective on shareholder returns. A debt-to-equity ratio of 0.32 indicates low leverage, while a current ratio of 2.75 reflects a strong ability to cover short-term liabilities.

Micron Technology Inc. (NASDAQ:MU) Price Target and Stock Performance Analysis

Micron Technology Inc. (NASDAQ:MU) is a prominent player in the semiconductor industry, known for producing memory and storage solutions. The company competes with other tech giants like Samsung and SK Hynix. On September 22, 2025, Brian Chin from Stifel Nicolaus set a price target of $173 for Micron, suggesting a potential increase of 6.31% from its current price of $162.73.

In 2025, Micron's stock has been on a notable upward trend, drawing significant interest from investors. However, as of September 18, 2025, the stock experienced a decline of 3.63% during the afternoon trading session. This fluctuation has sparked discussions among investors about the stock's future performance and investment potential.

On the day of the price target announcement, Micron's stock price decreased by 3.65%, equivalent to a $6.16 drop, reaching a low of $159.38 and a high of $163.70. Despite this volatility, the stock's performance over the past year has been impressive, with a high of $170.45 and a low of $61.54, indicating significant growth potential.

Micron Technology's market capitalization stands at approximately $182.12 billion, reflecting its substantial presence in the semiconductor market. The trading volume for the day was 37.31 million shares, highlighting the active interest and engagement from investors. As the company remains a focal point for potential investors, its stock performance continues to be closely monitored.

Micron Technology, Inc. (NASDAQ:MU) Earnings Preview and Financial Health

  • Micron Technology, Inc. (NASDAQ:MU) is set to release its quarterly earnings with an estimated EPS of $2.87 and projected revenue of $11.1 billion.
  • The company's stock has surged by 55% due to strong demand for AI memory and an upward revision in Q4 earnings guidance.
  • Micron's financial metrics reveal a strong position with a P/E ratio of approximately 28.74 and a debt-to-equity ratio of 0.32, indicating low debt levels.

Micron Technology, Inc. (NASDAQ:MU) is a leading player in the semiconductor industry, specializing in memory and storage solutions. The company is known for its high-bandwidth memory (HBM) products, which are in high demand, especially from major clients like Nvidia and AMD. Micron's focus on AI memory positions it well for future growth, as AI technology continues to expand.

Micron is set to release its quarterly earnings on September 23, 2025, with Wall Street analysts estimating an earnings per share (EPS) of $2.87 and projected revenue of approximately $11.1 billion. The company has a history of surpassing earnings estimates, and there is optimism that it will exceed the expected EPS of $2.86, as highlighted by Seeking Alpha. This optimism is supported by a 55% surge in stock price, driven by strong AI memory demand and an upward revision in Q4 earnings guidance.

Despite reaching all-time highs, Micron remains attractively valued with a forward price-to-earnings ratio of approximately 11. This suggests that the stock is trading at a discount compared to sector multiples. The company's robust revenue and EBITDA growth, along with margin expansion, support a price target of $250 by fiscal year 2026. Analysts are optimistic about the pricing environment for memory chips, which is expected to benefit Micron.

Micron's financial metrics further highlight its strong position. The company has a price-to-earnings (P/E) ratio of approximately 28.74 and a price-to-sales ratio of about 5.30. Its enterprise value to sales ratio is around 5.47, and the enterprise value to operating cash flow ratio is approximately 12.17. These figures suggest that the market values Micron's revenue and cash flow positively. Additionally, the company's debt-to-equity ratio is 0.32, indicating a relatively low level of debt compared to equity, and a current ratio of approximately 2.75, suggesting a strong ability to cover short-term liabilities.

Micron Posts Strong Q3 Beat and Bullish AI-Driven Guidance

Micron Technology (NASDAQ:MU) delivered stronger-than-expected fiscal third-quarter results and issued upbeat guidance, fueled by surging demand for AI-related memory products.

The company reported adjusted earnings of $1.91 per share on $9.3 billion in revenue, topping analyst estimates of $1.59 EPS and $8.84 billion in revenue. A key driver of the performance was a nearly 50% sequential jump in sales of high-bandwidth memory (HBM) chips—crucial components in AI data centers that support next-gen computing workloads.

Looking ahead, Micron provided fourth-quarter revenue guidance of $10.7 billion, plus or minus $300 million, well above the $9.88 billion Wall Street consensus. The strong forecast highlights the company's increasing leverage to AI infrastructure growth, with HBM demand emerging as a major revenue catalyst.

The upbeat results and guidance reinforce Micron’s positioning as a key supplier in the AI-driven semiconductor cycle, with investors responding positively to the accelerating momentum in high-performance memory solutions.

Micron Technology (NASDAQ:MU) Overview and Analyst Ratings

Micron Technology (NASDAQ:MU) Maintains Outperform Rating by Raymond James

Micron Technology (NASDAQ:MU) is a leading player in the semiconductor industry, specializing in memory and storage solutions. The company is known for its dynamic random-access memory (DRAM) and NAND flash memory products, which are essential components in various electronic devices. Micron competes with other major semiconductor companies like Samsung and SK Hynix.

On June 26, 2025, Raymond James maintained its "Outperform" rating for Micron, with the stock priced at approximately $126.56. This rating suggests that Raymond James expects Micron to perform better than the overall market. The firm also raised its price target for Micron from $120 to $150, indicating confidence in the company's future growth prospects.

Following Micron's recent earnings report, several analysts have shown increased optimism. At least three analysts have raised their price targets, with the average recommendation now at $141. This reflects Wall Street's positive sentiment towards Micron's performance, as highlighted by the stock's recent gains.

Despite the positive outlook, Micron's stock price has seen a slight decrease of about 0.75%, or $0.95, bringing it to approximately $126.30. The stock has traded between a low of $124.33 and a high of $130.05 today. Over the past year, Micron's stock has experienced significant fluctuations, with a high of $137.39 and a low of $61.54.

Micron Technology's market capitalization is approximately $141.14 billion, indicating its substantial size in the semiconductor industry. The trading volume for the day is around 32.08 million shares, reflecting active investor interest. As Micron continues to navigate the competitive landscape, its performance remains closely watched by analysts and investors alike.

Micron Technology, Inc. (NASDAQ:MU) Surpasses Earnings Expectations

  • Micron Technology, Inc. (NASDAQ:MU) reported earnings per share of $1.91, beating the estimated $1.59, driven by a surge in demand for AI applications.
  • The company's revenue reached approximately $9.3 billion, surpassing expectations due to the increasing need for memory and storage solutions in AI.
  • Despite a slight decline of 0.52% in Micron's stock, the third-quarter earnings report led to a 4% increase in its stock price, highlighting the company's strong performance and future potential.

Micron Technology, Inc. (NASDAQ:MU) is a leading player in the semiconductor industry, specializing in memory and storage solutions. The company is known for its dynamic random-access memory (DRAM) and NAND flash memory products, which are essential components in various electronic devices. Micron's competitors include companies like Samsung and SK Hynix, which also operate in the memory and storage market.

On June 25, 2025, Micron reported earnings per share of $1.91, surpassing the estimated $1.59. This strong performance is attributed to a surge in demand driven by advancements in artificial intelligence, as highlighted by The Motley Fool. The company's revenue also exceeded expectations, reaching approximately $9.3 billion compared to the estimated $8.85 billion. This growth is largely due to the increasing need for memory and storage solutions in AI applications.

Despite the promising growth in AI, Micron's stock saw a slight decline of 0.52%. However, the company's third-quarter earnings report led to a 4% increase in its stock price, as investors reacted positively to its performance. The report highlighted continued strength in DRAM and a recovery in NAND, positioning Micron favorably as it moves into the fourth quarter of 2025 and fiscal year 2026.

Micron's data center revenue more than doubled in the third quarter, contributing to a 37% increase in total sales from $6.81 billion a year ago. This surge in demand is largely attributed to the booming market for high bandwidth memory (HBM), driven by advancements in artificial intelligence. The company benefits from tight inventories and favorable pricing, which are expected to support its growth trajectory.

Micron's financial metrics provide insight into its market valuation and operational efficiency. The company's price-to-earnings (P/E) ratio is approximately 30.37, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio stands at about 4.54, reflecting the market's valuation of its revenue. Additionally, the enterprise value to sales ratio is around 4.78, providing insight into the company's valuation relative to its sales, including debt and excluding cash.

Micron Technology, Inc. (NASDAQ:MU) Quarterly Earnings Preview

  • Wall Street analysts estimate an earnings per share (EPS) of $1.57 and revenue of approximately $8.83 billion for the upcoming quarterly earnings.
  • Expected consensus revenue of $8.86 billion marks a 30% increase year-over-year, with adjusted net income predicted to rise significantly.
  • Micron's stock has seen nearly 50% growth in 2025, buoyed by its partnership with Nvidia and strong analyst ratings.

Micron Technology, Inc. (NASDAQ:MU) is a leading figure in the semiconductor industry, specializing in memory and storage solutions. As the company gears up for its quarterly earnings release on June 25, 2025, expectations from Wall Street analysts are notably high. They forecast an EPS of $1.57 and anticipate revenues to hit around $8.83 billion.

Analysts remain bullish on Micron's outlook, projecting that the company's profits will more than double from the previous year. The consensus estimates suggest that Micron will unveil revenue of $8.86 billion, a 30% increase year-over-year. This surge is backed by an expected adjusted net income of $1.86 billion, or $1.61 per share, a significant leap from $702 million, or $0.62 per share, reported a year earlier.

The company's shares have witnessed a remarkable upswing, appreciating nearly 50% in value throughout 2025. This uptrend is partially credited to its collaboration with Nvidia (NVDA), which announced better-than-expected quarterly revenue in March, fueled by a tripling in data center sales amid growing demand for AI technologies. Out of the 11 analysts covering Micron, nine have issued a “buy” rating, indicating strong confidence in its future performance.

In light of Micron's impending fiscal third-quarter earnings, analysts at Wedbush have revised their price target for the stock upwards from $130 to $150. This adjustment reflects the robust fundamentals observed in the memory market and a significant shift propelled by high-bandwidth memory (HBM) technology. Wedbush now values Micron at 11 times its EPS estimates, surpassing the usual cycle highs for a memory stock.

An examination of Micron's financial indicators reveals its competitive stance in the market. The company boasts a price-to-earnings (P/E) ratio of approximately 29.50, showcasing the premium investors are willing to pay per dollar of earnings. Its price-to-sales ratio is pegged at about 4.41, denoting the valuation placed on each dollar of sales. Furthermore, the enterprise value to sales ratio stands at roughly 4.65, providing insights into the company's valuation in comparison to its revenue.