Micron Technology stock (NASDAQ: MU) has taken holders on upward climb over this past 12 months, and has been one of the better performers in the index.
Having taken a 16% drop in price the week following new all time highs (ATH) in April, the shares have more than accounted for that in recent months, hitting fresh ATHs of $157.54 in June.
More recently, MU stock has pulled back with the tech sector, and is trading above the support level of $100.
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The stock trades close to 52 week highs, and with the tailwinds of the sector behind it, could be set for a further ascent. So why is Micron stock up, and what do analysts think for price targets over the coming year?
Micron Share Price Targets
Micron has a lot of coverage on the street, having been assessed by 25 analysts, who have set a 12-month average price target of $132.00 for the company’s shares.
As you might expect for a company that has had this type of trajectory, the analysts do not always catch up in time. Forecasts range quite considerably then, with the most optimistic analyst predicting a high above $220 and the most cautious suggesting a low below $100.00.
The current consensus target price indicates a potential upside a little under 10% from the stock’s recent trading range but these figures can shift rather rapidly based on earnings, data, guidance, or broader economic factors.
Our View: You would be wise to consider the views of the analyst community in conjunction with the fundamentals surrounding the company to properly determine a value for the stock that you feel is appropriate.
At the upper end of analysts estimates it would be easy to get carried away with the potential gains on show, but the flipside is that these targets can shift within the blink of an eye and that the view of analysts is very dynamic.
If you are considering swing trading, or day trading Micron Technologyshares that is a separate consideration, but for those planning for the long haul, fundamental analysis is king.
Micron Technology – The Basics Driving The Business
Founded Oct 5th 1978, Micron Technology, Inc has around 43,000 employees and 54,000 patents granted. As the 5th largest semiconductor company in the world, the firm specializes in memory and storage solutions, providing an array of products such as dynamic random-access memory (DRAM), NAND, and NOR memory and storage products under the Micron and Crucial brands.
Its operations are divided into four business units: Compute and Networking Business Unit (CNBU), which caters to client, cloud server, enterprise, graphics, and networking markets; Mobile Business Unit (MBU) for products used in smartphones and other mobile devices; Embedded Business Unit (EBU) that serves automotive, industrial, and consumer markets; and Storage Business Unit (SBU), which offers solid-state drives (SSDs) and components for enterprise, cloud, client, and consumer storage markets.
The company sells these products across different markets but is in the realm of AI that the company has picked up most of a following. As the demand for AI stocks continues to look strong, the outlook for Micron remains the same, with markets eagerly looking for the next, or even the next, next, Nvidia.
In financial terms, Micron Technology reported a total revenue of $15.54 billion over the last complete financial year, reflecting a drop of just under 50% compared to 2022. Despite this, MU has beat on EPS expectations over the last 4 quarters, and turned positive with an EPS of $0.42 against what was expected to be a negative $0.24 delivery. With the next data set due on 26th Jun, markets look to be expecting big things from Micron in order to maintain the current pace.
