Micron (NASDAQ:MU) stock had been on a tear ahead of the company’s fiscal fourth-quarter results, with expectations running high. The memory giant delivered with its A-game, yet, in a classic Wall Street twist, the shares still closed the day ~3% lower.
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That market reaction belied the numbers, which showed Micron firing on all cylinders. Fueled by booming AI data center demand, revenue came in at $11.32 billion, up 46.1% year-over-year and $160 million above expectations. Adjusted EPS reached $3.03, topping the Street’s forecast by $0.17.
Importantly, management signaled that the momentum isn’t slowing down. For the November quarter (FQ1), Micron guided for adjusted EPS of $3.60 to $3.90, well above the $3.10 consensus, and revenue of $12.2 billion to $12.8 billion, also topping the $11.91 billion forecast.
The improving outlook is also reflected in profitability. Gross margins, which stood at 35.3% a year ago, climbed to 44.7% in FQ4 and are expected to push past 50% in FQ1.
Drilling down into the business lines, Micron highlighted strong demand for DRAM, the main memory in PCs, servers, and other devices. Its HBM products are already booked solid through 2026, with contracts covering most of its planned capacity, while the company raised its 2025 DRAM bit demand growth outlook to the high teens.
As for NAND – that is, flash memory used for long-term storage in devices like SSDs, smartphones, and memory cards – Micron lifted its 2025 NAND bit demand growth forecast to the low-to-mid teens, up from its prior expectation of low double digits. It sees supply-demand conditions improving further in 2026 and continues to forecast mid-teens growth over the medium term.
With gross margin strength likely to carry into the February quarter, Goldman Sachs analyst James Schneider anticipates upward revisions to consensus estimates over the medium term. The analyst notes that the DRAM market “remains quite healthy,” while the NAND market has tightened sharply, creating additional support for Micron’s growth. The company is also executing well on products, with its HBM share now matching its “overall share position.”
However, all that goodness is not enough for Schneider to become a Micron bull.
“We see potential risk of pricing retracement in HBM in 2026 given qualification of additional suppliers (such as Samsung),” says the analyst. “We could consider being more constructive on the stock if we see evidence of further supply/demand tightness in 2026, or further improvement in Micron’s market share relative to competitors.”
As such, Schneider assigns MU shares a Neutral rating, although his price target goes from $130 to $145. That said, the figure remains a Street-low and factors in a one-year slide of 13%. (To watch Schneider’s track record, click here)
The broader analyst community, however, is far more upbeat. While 2 other analysts remain on the sidelines, 26 Buys push the stock to a Strong Buy consensus rating. And with an average price target of $193.93, the Street is calling for ~20% upside in the months ahead. (See MU stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.