Micron, a leading manufacturer of computer memory chips, exceeded expectations with its latest financial results, prompting analysts to revise their estimates. In premarket trading, Micron shares surged by 6% to $83.43. While competitors also experienced an increase, their gains were not as significant. Analog Devices saw a modest rise of 1.1%, Texas Instruments climbed by 0.8%, and Applied Materials rose by 1.5%.
Benefiting from the demand for chips compatible with artificial intelligence programs, Micron reported a smaller-than-anticipated loss and higher revenue compared to analysts’ predictions. The company was able to raise prices and provide an improved outlook for the current quarter.
As a result of these positive developments, John Vinh at KeyBanc raised his estimates and increased the price target for Micron stock to $100. In the year leading up to Thursday, Micron shares had already surged by over 50%.
Leading analysts at SIG, led by Mehdi Hosseini, also revised their estimates upwards. They set a price target of $112 but acknowledged potential risks such as weaker demand and potential deficiencies in management execution.
On a slightly more cautious note, the team at Piper Sandler, led by Harsh V. Kumar, set a price target of $70 due to the stock’s substantial gains so far this year. Despite this, they expressed positive sentiments about the company and the industry as a whole.
In summary, Micron’s strong performance and favorable market conditions have led to an optimistic outlook from analysts. However, due to recent price increases that reflect these trends, some analysts maintain a neutral stance on the stock.
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