Wolfe Research Reaffirms Outperform on Micron (MU) After Upbeat Preannouncement

Micron Technology, Inc. (NASDAQ:MU) is one of the AI Stocks Analysts Are Watching Closely. On August 11, Wolfe Research analyst Chris Caso reiterated an Outperform rating on the stock with a $160.00 price target. The rating reiteration follows Micron pre-announcing its fiscal Q4 results ahead of a competitor conference.

Micron revealed that revenue would be approximately $500 million higher than previously expected, with gross margins about 250 basis points better than previous guidance. Better pricing, particularly in DRAM products, has driven the noted improvements.

EPS guidance has been raised from $2.50 to $2.85, with continued demand for data center and AI products. While HBM traction is strong, some investors remain cautious about the second half of the year due to the effect of potential pull-ins on the 2H CY25 outlook and the likelihood that Samsung qualifies on HBM4/Rubin at NVDA.

“The positive preannouncement and pricing commentary however indicate – so far, so good. More following the company’s presentation. Details. MU updated its previous guidance for its F4Q25, indicating that the midpoint of its revenue guidance is expected to be ~$500mn above its prior expectations, driving an additional ~250bps GM at the midpoint. In addition, MU anticipates OpEx to be a touch above its prior guidance, now $1.22bn (vs prior $1.20bn), driving implied OpM ~280bps higher than previous guidance to ~33.6%. EPS guidance was increased to $2.85 from $2.50. MU noted the revised guidance reflects improved pricing, particularly in DRAM, and strong execution.”

Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.

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