Micron Stock Rises on Intel's Strong Earnings Report

Written by Emily J. Thompson, Senior Investment Analyst

Source: Fool

Updated: 1 hour ago

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MU+3.32%

INTC+19.98%

NVDA+5.05%

Should l Buy MU?

Source: Fool

Intel's Earnings Beat: Intel reported a pro forma earnings of $0.29 per share, significantly exceeding the $0.01 forecast, with sales of $13.6 billion reflecting a 7% year-over-year growth, which has excited investors in semiconductor stocks, positively impacting Micron.
Optimistic Outlook for Micron: As Intel's sales increase, investors anticipate a corresponding rise in demand for Micron's computer memory, particularly in the AI sector, which is expected to drive further business growth and market share for Micron.
Positive Profit Forecast: Intel predicts a 5% sequential sales growth in Q2 and expects to report GAAP profits for the first time, with an estimated earnings of $0.08 per share, providing strong support for Micron's future performance.
Attractive Valuation: Micron's valuation is under 23 times trailing earnings and only about 8 times forward earnings, indicating its investment appeal, and combined with Intel's robust performance, market confidence in Micron has significantly increased.

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Analyst Views on MU

Wall Street analysts forecast MU stock price to fall

26 Analyst Rating

24 Buy

2 Hold

0 Sell

Strong Buy

Current: 481.720

Low

235.00

Averages

336.12

High

500.00

Current: 481.720

Low

235.00

Averages

336.12

High

500.00

UBS

Buy

maintain

$510 -> $535

2026-04-08

Reason

UBS

Price Target

$510 -> $535

AI Analysis

2026-04-08

maintain

Buy

Reason

UBS raised the firm's price target on Micron to $535 from $510 and keeps a Buy rating on the shares. Despite sentiment around memory that has "turned very negative" post Micron's gross margin guidance, the firm says its latest industry checks point to continued strengthening in pricing for both DRAM and NAND and it continues to believe the market is in the midst of a super-cycle that will "likely defy traditional analytical norms for the stock." Growing evidence that memory companies are willingly trading some near-term upside for longer-term visibility and by extension, more stable earnings, margins, and ROE across the cycle, strengthens the firm's conviction in the durability of this upcycle, the analyst added.

Erste Group

Buy

Hold

downgrade

2026-04-02

Reason

Erste Group

Price Target

2026-04-02

downgrade

Buy

Hold

Reason

Erste Group downgraded Micron to Hold from Buy. The company needs \"high investments\" to expand production, which reduces its free cash flow, the analyst tells investors in a research note. Erste also has concerns about the long-term sustainability of the memory cycle.

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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 Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.

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 Strong Growth in Memory Market

4 hours agoFool

Surging Memory Demand: The rapid advancement of artificial intelligence is driving a significant increase in memory chip demand, with a projected shortage lasting until 2030, which is boosting Micron Technology's market share and pricing power.
Outstanding Financial Performance: In Q2 of fiscal 2026, Micron reported revenue of $23.9 billion, a 196% year-over-year increase, with a net profit margin of 41.5%, showcasing its strong profitability in the memory market.
Optimistic Future Outlook: Micron projects Q3 2026 revenue to reach $33.5 billion, representing a 260% increase from $9.3 billion in Q3 2025, indicating the company's ongoing growth potential in the memory sector.
Strategic Investment Initiatives: The new $100 billion factory being built in New York will become the largest semiconductor manufacturing facility in the U.S., further enhancing Micron's competitiveness in the memory market and preparing for future technological demands.

Micron Technology's Dominance in the Memory Market

4 hours agoNASDAQ.COM

Surging Memory Demand: As artificial intelligence technology rapidly evolves, the demand for memory has surged, with Micron Technology, one of the three major memory manufacturers, actively meeting market needs, and the memory shortage is expected to persist until 2030, further driving the company's performance growth.
Outstanding Financial Performance: In the second quarter of fiscal 2026, Micron reported revenue of $23.9 billion, a 196% year-over-year increase, and a 75% increase from the first quarter, demonstrating the company's strong growth momentum in the memory market and reflecting its competitive advantage in the industry.
Expansion Investment Plans: Micron has announced the construction of a $100 billion factory in New York, which will become the largest semiconductor manufacturing facility in the United States, aimed at enhancing production capacity to meet the growing memory demand and further solidifying its market position.
Undervalued PEG Ratio: With a PEG ratio of 0.46, significantly below 1, Micron's stock is undervalued relative to its expected earnings growth, and combined with a net profit margin of 41.5%, this indicates substantial future growth potential, making it a stock worth investors' attention for long-term value.

Midday Market Moves: Notable Stock Fluctuations

8 minutes agoCNBC

Comcast Downgrade: Comcast's stock fell nearly 8% after Deutsche Bank downgraded its rating from Buy to Hold, with analysts indicating that while there is visibility into sustainable revenue and EBITDA growth, they do not expect multiple expansion, highlighting challenges in a stable but non-growing business environment.
HCA Healthcare Decline: HCA Healthcare's stock dropped over 7% due to a milder flu season resulting in fewer patient admissions, and although the company narrowly beat analyst profit estimates, investors are concerned about declining patient demand as Affordable Care Act subsidies phase out.
Organon Surge: Organon's stock spiked 22% following a report from The Economic Times that Sun Pharma plans to submit a $13 billion offer for the U.S.-based company, which could significantly enhance Organon's market value and investor confidence.
Intel Earnings Beat: Intel reported first-quarter earnings of 29 cents per share on revenue of $13.58 billion, both exceeding Wall Street expectations, leading to a stock rally of over 23%, indicating a strong recovery momentum in the semiconductor market that may boost overall industry investment enthusiasm.