Top Analyst Reaffirms Buy Rating on Micron Stock (MU) Ahead of Its Q2 Earnings
Micron is set to release its second quarter Fiscal 2025 financials on March 20. Wall Street analysts expect the company to report earnings of $1.43 per share, reflecting a 240% increase year-over-year. Meanwhile, revenues are expected to rise 36% year-over-year to $7.90 billion. Ahead of the Q2 earnings release, five-star analyst Krish Sankar of TD Cowen maintained his Buy rating on the stock with a price target of $125 per share.
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Notably, Sankar is ranked 400 out of 9,416 analysts tracked by TipRanks. He has a 51% success rate with an average return per rating of 15.10% over a one-year time frame.
Micron is amemory chip maker, specializing in DRAM and NAND flash storage solutions for data centers, AI, and consumer electronics.
Sankar's Views on Micron Stock
Analyst Krish Sankar has a positive outlook on Micron. He expects the company to report stronger earnings in the near future as memory suppliers work together to raise DRAM and NAND prices. Higher prices would allow Micron to generate more revenue while improving profit margins.
The analyst also pointed out Micron's growing role in the High Bandwidth Memory (HBM) market, where HBM prices are expected to stay steady through 2026. Some industry feedback suggests Micron's HBM3e is the best in the market. The analyst noted that investors are now less worried about an oversupply of HBM and more focused on whether suppliers can raise prices later this year. If this continues, Micron could see strong growth going forward.
At the same time, the analyst also noted that Micron is expanding its reach with major cloud providers like Amazon's (AMZN) AWS, Microsoft's (MSFT) Azure, and Alphabet's (GOOGL) Google Cloud. Its share at AWS is increasing from nearly zero in Trainium 2 to 15-20% in Trainium 3, making AWS its second-biggest HBM customer after Nvidia (NVDA).
Still, Sankar remains cautious due to weak demand in the mobile and PC markets, which account for a large share of DRAM and NAND sales. If demand does not pick up, keeping prices high could be a challenge. Despite these concerns, Micron's growth in the HBM market and stable pricing trends make it a promising long-term investment.
Is Micron a Good Stock to Buy?
Wall Street has a Strong Buy consensus rating on Micron stock based on 19 Buys and two Holds. The average MU stock price target of $133.50 implies about 32.45% upside potential from current levels. MU stock has risen about 19.76% year-to-date.
See more MU analyst ratings
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