Shares of Micron Know-how (NASDAQ: MU) rallied 6.8% on Monday, as of 1:41 p.m. ET.
The reminiscence chip provider will maintain its earnings on Wednesday, as one of many final main firms to report earlier than the 12 months closes out. Forward of Wednesday’s information, one analyst reiterated his purchase ranking and bullish value goal.
As we speak, Citigroup sell-side analyst Christopher Danley printed a bullish notice forward of earnings, sustaining a purchase ranking and a $150 value goal.
Although Micron’s inventory surged earlier this 12 months, it has offered off since July, amid skepticism over the non-artificial intelligence (AI) parts of the semiconductor sector. In his notice Monday, Danley admitted he expects Micron to information under consensus for the present quarter, because of softness within the PC and smartphone markets.
Nevertheless, Danley wrote, “Whereas there’s extra DRAM stock within the PC and handset finish markets (mixed 50% of [fiscal 2024] gross sales), this could go away this spring and is being offset by power from the information middle finish market (35% of F24 gross sales).”
Micron has seen crosscurrents, as its high-bandwidth DRAM reminiscence merchandise for synthetic intelligence are seeing a surge in demand, at the same time as different finish markets languish in a downturn that began all the way in which again in 2022. Nevertheless, it seems that Danley thinks the nice outweighs the unhealthy for the stability of 2025.
Wall Avenue analysts count on Micron to ship $8.71 billion in income and $1.77 in adjusted earnings per share (EPS) on Wednesday. Nevertheless, as most are conscious, commentary and ahead steering will even be as or extra vital than reported numbers.
Whereas Danley thinks the present quarter information could also be a tad under the $8.99 billion in income and $1.94 in EPS, any potential sell-off might be a possibility to pounce. In any case, the demand for DRAM reminiscence ought to solely proceed to develop within the age of AI, and Micron has been executing properly of late.
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