Boise, Idaho-based Micron Technology, Inc. (MU) designs, develops, manufactures, and sells memory and storage products. Valued at $110.6 billion by market cap, the company manufactures and markets dynamic random access memory chips, static random access memory chips (SRAMs), flash memory, semiconductor components, and memory modules.

Shares of this chip giant have outperformed the broader market considerably over the past year. MU has gained 43.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.2%. In 2024 alone, MU’s stock rose 16.9%, compared to the SPX’s 20.1% rise on a YTD basis. 

Narrowing the focus, MU has lagged behind the iShares Semiconductor ETF (SOXX). The exchange-traded fund has gained about 46.1% over the past year. However, MU’s gains on a YTD basis outshine the ETF’s 14.9% returns over the same time frame.

Micron Technology's success can be credited to its strong demand for high-bandwidth memory (HBM) in AI accelerators, which offer improved power efficiency and faster data transfer speeds. The company's recent introduction of two new DDR-5 memory modules tailored for AI PCs further demonstrates its commitment to advancing technology and staying ahead of the curve. The new modules boast speeds that surpass DDR-4 and traditional DDR-5, showcasing Micron's dedication to innovation.

On Sep. 25, MU shares closed up more than 1% after reporting its Q4 results. Its adjusted EPS of $1.18 exceeded Wall Street expectations of $1.10. The company’s revenue was $7.8 billion, beating Wall Street forecasts of $7.6 billion. For Q1 2025, Micron expects its adjusted EPS to range from $1.66 to $1.82, and expects revenue in the range of $8.5 billion to $8.9 billion.

For the current fiscal year, ending in August 2025, analysts expect MU’s EPS to grow considerably to $8.31 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 27 analysts covering MU stock, the consensus is a “Strong Buy.” That’s based on 23 “Strong Buy” ratings, two “Moderate Buys,” one “Hold,” and one “Strong Sell.” 

This configuration is less bullish than two months ago, with 24 analysts suggesting a “Strong Buy.”

On Oct. 18, Morgan Stanley (MS) analyst Joseph Moore maintained a “Hold” rating on MU with a price target of $114, implying a potential upside of 14.3% from current levels.

The mean price target of $146.22 represents a 46.6% premium to MU’s current price levels. The Street-high price target of $250 suggests an ambitious upside potential of 150.7%. 

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On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.