Micron's Q3 Earnings: 8 Analysts Optimistic About AI Growth, Predict Success In Advanced Memory Technology

Micron Technology Inc MU released its Q3 2024 earnings after the market close on June 26, reporting better-than-expected revenue of $6.81 billion and earnings per share of 62 cents, surpassing estimates. Despite this, the stock traded lower on Thursday due to lackluster top-line guidance, affecting not only Micron but also Advanced Micro Devices, Inc AMD shares in sympathy.

Here’s how 8 analysts covering Micron stock reacted to the report:

BofA Securities Sees Potential Share Gains With Micron Stock

Analyst Vivek Arya reiterated a Buy with a price target of $170, implying a 19.4% upside.

Arya sees the company as a “key AI beneficiary in both data center and edge.” He recognizes Micron as the “last remaining pure-play U.S.-based memory company” and sees it benefitting from trends in data centers, cloud computing and 5G.

As memory pricing improves, Arya sees Micron emerging from the memory cycle trough and foresees potential share gains in high-bandwidth memory by CY25E.

KeyBanc Raised PT For Micron Stock As Valuation Gap With Samsung Closes In

Analyst John Vinh has an Overweight rating on the stock. He raised his price target from $150 to $160.

Vinh applauded Micron’s “recent efforts to close the technology gap with Samsung.” He also noted that Micron is expanding its presence in data centers with flash-based products and complete data storage solutions, potentially leading to higher growth and profits. Vinh sees positive long-term memory trends of increased DRAM and NAND adoption, benefiting Micron.

Related: Micron Stock Is Moving Lower Thursday: What’s Going On?

Piper Sandler Sees End Markets Improving For Micron

Harsh V. Kumar rates Micron stock as Overweight with a price target of $150 a share.

Kumar remains positive on Micron following its May earnings report. He sees end markets improving, with increasing demand and tight supply expected to persist through most of 2025. He noted that data center memory demand has surged, with revenues nearly doubling year-over-year. “We view the current business conditions for MU as
extremely favorable,” said Kumar.

JPMorgan On Micron, Raised Price Target To $180

Analyst Harlan Sur reiterated an Overweight rating with a price target of $180.

According to Sur, Micron is poised to benefit from secular trends in mobile DRAM, reducing volatility in commodity DRAM. The Elpida acquisition positions Micron “well to benefit from secular trends in mobility, networking, and cloud computing.” New technology, divestiture of non-core assets, and cost-cutting efforts are expected to improve gross margins and profitability in the coming quarters.

Goldman Sachs Sees Micron Stock’s Recent Pullback As An Opportunity

Analyst Toshiya Hari has a Buy rating on Micron stock with a 12-month price target of $158, implying a 21% upside.

Hari sees “AI demand growth and disciplined supply” driving “above-consensus earnings power in CY2025” for Micron. Despite heightened market expectations, Hari sees the recent stock pullback as an opportunity to increase positions.

Key factors driving this outlook include: a) anticipated growth in AI compute, leading to increased Memory and Storage demand initially in data centers and later at the edge; b) Micron’s potential for market share gains in the High-Bandwidth Memory sector; and c) expected supply-side discipline among Micron and its peers, likely contributing to positive EPS revisions through CY2024 and into CY2025.

Needham Sees ‘HBM Firing On All Cylinders’ For Micron

Analyst N. Quinn Bolton has a Buy rating with a price target of $150 a share.

Bolton sees “HBM firing on all cylinders,” given Micron’s HBM ramp is well underway. Bolton sees the company capitalizing on the AI server growth and anticipates significant margin-accretive revenue from HBM in FY25.

Demand is improving in the Data Center segment in the short term, he noted, with positive signals also noted in Auto & Industrial markets. Supply constraints persist, prompting customers to secure long-term agreements, bolstering expectations of higher average selling prices (ASPs) through FY25. Additionally, Micron plans increased CapEx for FY25, with indications suggesting FY26 will also see growth.

Wedbush Securities on Micron

Analyst Matt Bryson has an Outperform rating with a 12-month price target of $170.

Micron’s “FQ4 guide didn’t quite meet our more lofty expectations,” said Bryson. However, he noted strong progression in the company’s fundamentals, supporting a positive outlook. He expects financials, including ASPs, revenues, margins, and EPS, to continue improving at an accelerated rate for some time.

Stifel On Micron

Analyst Brian Chin has a Buy rating with a target price of $165 a share.

Chin remains “encouraged that pricing leverage for Micron and the memory market as a whole continues to strengthen,” with customers securing long-term supply. HBM sales are progressing as expected, with a multi-billion revenue target for FY25. However, there are concerns about HBM demand affecting supply in other markets, reflected in flat to modest bit growth for F4Q and increased capex in FY25. Overall, the outlook remains positive.

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• Micron Q3 Earnings: Revenue Beat, EPS Beat, Q4 Earnings Guidance, ‘Expanding AI-Driven Opportunities Ahead’ And More

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