Micron Technology Smashes Q4 Estimates, Pricing Drives GM Outlook; Analysts Raise Price Target

Core Viewpoint - Micron Technology Inc reported strong fiscal fourth-quarter results, exceeding expectations in sales and margins, yet its shares dipped in early trading despite positive guidance for the upcoming quarter [1][3]. Financial Performance - Micron generated $11.3 billion in revenue and earnings of $3.03 per share, surpassing consensus estimates of $11.2 billion and $2.86 per share [4]. - The company projected first-quarter revenues of $12.5 billion and earnings of $3.75 per share, exceeding consensus estimates of $11.9 billion and $3.10 per share [5]. Market Trends - DRAM pricing increased sequentially in the low-single-digit range due to tight industry supply and a favorable mix of high-broadband memory (HBM) [4]. - HBM revenues grew approximately 30% sequentially, nearing an annual run rate of $8 billion [5]. - Micron's HBM revenue reached a record high of around $2 billion, reflecting a 33% sequential growth [6]. Guidance and Expectations - Management indicated a first-quarter non-GAAP gross margin of 51.5%, significantly higher than the Street's expectation of 45.7% [7]. - The company expects to sell out its remaining 2026 HBM supply within the next few months, indicating strong demand [7]. Analyst Ratings and Price Targets - RBC Capital Markets raised its price target for Micron from $200 to $220, maintaining an Outperform rating [12]. - KeyBanc Capital Markets increased its price target from $160 to $215 while maintaining an Overweight rating [12]. - Needham raised its price target from $150 to $200, reaffirming a Buy rating [12]. - Rosenblatt Securities lifted its price target from $150 to $200, reiterating a Buy rating [12]. - BofA Securities increased its price target from $140 to $180, maintaining a Neutral rating [12]. Price Action - Shares of Micron Technology declined by 2.08% to $162.95 at the time of publication [13].