Micron shares dip after revenue forecast and supply deal
MU•Micron shares fell nearly 1% premarket after the company forecast quarterly revenue above estimates and said customer commitments under long-term supply agreements increased to $32 billion. Its fourth-quarter revenue more than quadrupled to $54.23 billion, beating estimates of $51.07 billion.
1. Forecast and commitments
Micron forecast quarterly revenue above estimates on Wednesday after the bell and said customers had increased commitments under its long-term supply agreements to $32 billion. Shares fell nearly 1% in premarket trading.
2. Analyst outlook
D.A. Davidson raised its price target by $100 to $2,100. It expects industry DRAM shipments to grow, with Micron’s supply keeping pace, and NAND shipments to rise, though Micron’s growth may trail the broader market slightly. The firm said tighter supply-demand conditions through 2028 could sustain strong pricing and earnings growth, easing concerns that the industry is at a cyclical peak.
3. Quarterly results
Micron’s fourth-quarter revenue more than quadrupled to $54.23 billion, above estimates of $51.07 billion. The stock had risen more than 273% year to date as of the prior close; 49 analysts rated it “buy” on average, and the median price target was $1,535.
