Micron Technology Projects 294% EPS Growth in 2023 Amid Chip Demand Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 45m ago
0mins
Source: Fool
- Market Opportunity: The surge in demand for chips and components in data centers has created significant opportunities for Micron Technology, which projects a 294% increase in EPS to $32.67 in 2023, indicating strong growth potential.
- Relative Valuation: Micron's forward P/E ratio stands at just 11, significantly lower than Nvidia's 24 and AMD's 35, despite its faster earnings growth, suggesting attractive investment value in its stock.
- Revenue Growth: Micron reported a 57% year-over-year revenue increase last quarter, with earnings soaring by 175%, reflecting robust demand in the high-bandwidth memory market, particularly for GPUs supplied to Nvidia.
- Future Outlook: A report from IDC indicates that the memory shortage could extend into 2027, and with Nvidia's upcoming chip releases, Micron is expected to benefit from sustained demand for high-bandwidth memory, although investors should remain cautious of potential oversupply risks.
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: 397.580
Low
235.00
Averages
336.12
High
500.00
Current: 397.580
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 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.
