Why Memory Chipmaker Micron Is Rising Premarket Today

Micron Technology, Inc. (MU) shares climbed over 1% in the early premarket trading on Tuesday as traders look ahead to the memory chipmaker’s quarterly results.

Micron is scheduled to report its fourth-quarter results for fiscal year 2025 after the market closes on Tuesday. According to Fiscal.ai-compiled consensus, Micron is expected to report adjusted earnings per share (EPS) of $2.86 and revenue of $11.11 billion for the quarter. This compares to the year-ago quarter’s $1.18 and $7.75 billion, respectively.

In mid-August, the company raised its quarterly guidance ahead of its Chief Business Officer Sumit Sadana’s participation in a KeyBanc Technology Conference fireside chat. The company raised the revenue outlook to a range of $11.2 billion, plus or minus $100 million, from $10.7 billion, plus or minus $300 million. It also lifted its adjusted EPS guidance to a range of $2.85, plus or minus $0.07, and adjusted gross margin outlook to 44.5%, plus or minus 0.5%.

On Monday, Morgan Stanley’s semiconductor analyst Joseph Moore raised the price target for Micron stock to $160 from $135. The analyst rates the stock as an ‘Overweight. Moore said the upward adjustment followed an increase to his November quarter estimates, well above the consensus estimates, reflecting strong conditions across DRAM and NAND memory chips.

According to the analyst, short-term outcomes for the stock will probably be more driven by clarity on HBM 3e/HBM 4 than by strong earnings. HBM stands for advanced high-bandwidth memory chips used for artificial intelligence (AI) processes and applications. The company competes with South Korean suppliers such as SK Hynix and Samsung for these chips.

On Stocktwits, retail sentiment toward Micron pushed further into ‘bullish’ territory (69/100) and the message volume was ‘high.’

Micron stock has gained 96.4% this year. The consensus price target for the stock, according to Koyfin, is $162.86, suggesting it is nearly fairly valued at current levels. 

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