Micron sidelines supply concerns as growth grabs focus
MU•Micron forecast quarterly revenue above Wall Street estimates and said customer commitments under long-term supply agreements rose to $32 billion, underscoring demand for AI memory chips. Analysts said the outlook and supply agreements strengthen Micron’s growth prospects and ease supply concerns.
1. Demand and commitments
Micron forecast quarterly revenue above Wall Street estimates and said customer commitments under long-term supply agreements had risen to $32 billion.
2. Analyst views
Morgan Stanley said Micron had strong visibility into its share of industry growth and that its guidance should help ease concerns about rising supply. J.P. Morgan said the company’s results, increased supply coverage and tighter supply-demand outlook strengthened its multi-year earnings growth story. TD Cowen highlighted demand for memory used by AI agents, while Morningstar said high-bandwidth memory could continue to grow as a share of Micron’s shipments and revenue.
3. Price targets
The median price target from 49 brokerages covering Micron was $1,535. Morgan Stanley’s target was $1,200, J.P. Morgan’s was $1,540 and TD Cowen’s was $1,600; Morningstar’s fair value estimate was $700.
