Micron's Record Quarter Points to Tighter Memory Supply Through 2028: Analysts Respond

9% in early trading on Thursday, even after the company reported record fiscal fourth-quarter results and guided well above expectations. • Micron stock is moving today. What’s going on? Here are some key analyst takeaways: Rosenblatt analyst Kevin Cassidy reiterated a Buy rating, while raising the price target from $1,500 to $1,900.

A. Davidson analyst Gil Luria reiterated a Buy rating, while raising the price target from $2,000 to $2,100. P. Morgan analyst Harlan Sur reiterated an Overweight rating and price target of $1,540.

J. Muse reiterated an Overweight rating and price target of $2,000. Needham analyst N. Quinn Bolton reaffirmed a Buy rating and price target of $1,650.

Bank of America Securities analyst Vivek Arya reiterated a Buy rating and price target of $1,550. RBC Capital Markets analyst Srini Pajjuri reiterated an Outperform rating and price target of $1,500. Check out other analyst stock ratings. Micron Analyst Commentary Rosenblatt: “We were surprised by management’s outlook for a deceleration of DRAM bit growth Y/Y,” Cassidy said in a note.

Industry growth in DRAM, the main memory used in servers, PCs and phones, should slow to the low-20% range in 2027 and 2028 from the mid-20% range in 2026, as high-bandwidth memory (HBM) is harder to make. Faster cleanroom construction lifts fiscal 2027 capital spending above $50 billion, versus Rosenblatt’s prior $45 billion forecast. Even so, Cassidy expects free cash flow above $100 billion. His target is 10 times his fiscal 2028 earnings estimate of $190 per share.

A. ” Boise, Idaho-based Micron now has 26 strategic customer agreements (SCAs), up 10 from a quarter ago. Even at floor prices, gross margins should stay above the prior cycle peak of 61%, the analyst noted. His target is 13 times calendar 2027 earnings.

P. ” New SCAs are being priced at today’s elevated market levels, which in his view sets a higher and more durable margin floor. Sur estimates about $108 billion in free cash flow from the second through fourth quarters of fiscal 2027. He expects buybacks at scale right after Dec.

9, with management already signaling a request for a larger repurchase authorization. Cantor Fitzgerald: Muse said he could not recall a management team ever guiding for revenue and gross margin to grow every quarter for a full year. Cantor models over $333 billion in free cash flow over the next eight quarters, with aggressive buybacks starting Dec. 9, when CHIPS Act limits end.

6 times Muse’s calendar 2027 earnings estimate of $188 per share, Micron is “simply too cheap to ignore,” he wrote. Needham: “Execution on HBM is continuing as gross margins are approaching DRAM margin levels,” Bolton said. The vast majority of calendar 2027 HBM supply is already contracted at significantly higher prices. 2 billion.

Customer commitments under the SCAs rose to $32 billion, mostly cash deposits. Bank of America Securities: Arya raised his fiscal 2027 and 2028 earnings estimates by 23% and 36%, to $172 and $198 per share. As memory claims a bigger share of AI spending, “we expect memory to increasingly capture more value in 2027 and beyond,” he wrote. He sees upside to Wall Street’s $30 billion to $35 billion fiscal 2027 buyback estimate, with repurchases reaching $60 billion to $100 billion a year by fiscal 2028 and 2029.

The risks he flagged are an unclear near-term buyback level, customers designing in less HBM and competition from China’s CXMT. 78. 5 times that figure, valuation is “barely giving credit to floor pricing agreements,” he wrote. SCAs remain untested in a downturn, but should offer meaningful protection even if some customers fall short.

71 at the time of publication on Thursday. Read Also: Top 5 Semiconductor Stocks to Own Into Year End: Bank of America Image: Shutterstock