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 yr closes out. Forward of Wednesday’s information, one analyst reiterated his purchase score and bullish worth goal.
Immediately, Citigroup sell-side analyst Christopher Danley revealed a bullish observe forward of earnings, sustaining a purchase score and a $150 worth goal.
Although Micron’s inventory surged earlier this yr, it has offered off since July, amid skepticism over the non-artificial intelligence (AI) parts of the semiconductor sector. In his observe Monday, Danley admitted he expects Micron to information beneath consensus for the present quarter, as a consequence of softness within the PC and smartphone markets.
Nevertheless, Danley wrote, “Whereas there may be 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 best way again in 2022. Nevertheless, it seems that Danley thinks the nice outweighs the unhealthy for the steadiness of 2025.
Wall Road analysts anticipate 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 steerage may even be as or extra vital than reported numbers.
Whereas Danley thinks the present quarter information could also be a tad beneath the $8.99 billion in income and $1.94 in EPS, any potential sell-off might be a possibility to pounce. In spite of everything, the demand for DRAM reminiscence ought to solely proceed to develop within the age of AI, and Micron has been executing effectively of late.
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