An options strategy to buy the dip on this volatile chipmaker that recently pulled back
Written by Emily J. Thompson, Senior Investment Analyst
Source: CNBC
Micron Technology's Market Position: Micron is poised for growth following a recent stock pullback, focusing on high-bandwidth memory (HBM) chips critical for AI processors, with expectations to capture 20%-25% market share by 2025.
Investment Strategy: A bullish options trade is recommended, involving a September call vertical strategy that allows investors to capitalize on Micron's favorable risk-to-reward profile, targeting a price increase towards $135.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MU is 336.12 USD with a low forecast of 235.00 USD and a high forecast of 500.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 435.790
Low
235.00
Averages
336.12
High
500.00
Current: 435.790
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU). CNBU segment includes memory products and solutions sold into the data center, PC, graphics, and networking markets. MBU segment includes memory and storage products sold into the smartphone and other mobile-device markets. EBU segment includes memory and storage products and solutions sold into the intelligent edge through the automotive, industrial, and consumer embedded markets. SBU segment includes SSDs and component-level storage solutions sold into the data center, PC, and consumer markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Micron Technology's Performance Boosted by AI Demand
- Significant Revenue Growth: Micron Technology reported $13.6 billion in revenue for the quarter ending November 27, 2025, marking a 57% year-over-year increase, reflecting strong market demand and support from enterprise customers.
- Dramatic Profit Increase: The company's operating profit nearly tripled from $2.2 billion to $6.1 billion, indicating that its bottom-line growth is outpacing revenue growth, which boosts investor confidence.
- Successful Strategic Shift: Micron's decision to exit the consumer memory products market and focus on the enterprise sector is expected to further enhance margins in response to robust demand projected to last until 2027.
- Attractive Valuation: Although the current P/E ratio stands at 38 times earnings, analysts project a forward P/E of only 13, significantly lower than the S&P 500's average of 22, highlighting its potential as a growth investment.
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Earnings Report Impact: Western Digital's recent earnings report has generated significant excitement in the technology sector, confirming positive expectations.
Sector Transformation: The company’s performance highlights a shift in a previously stagnant area of technology, indicating potential growth and innovation.
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