Micron Technology Reports 57% Revenue Growth in 2025, Valuation Appears Extremely Attractive
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Significant Revenue Growth: Micron Technology reported a 57% year-over-year revenue increase in its latest quarter, alongside a 167% rise in non-GAAP earnings, demonstrating robust business performance that strengthens its competitive position in the semiconductor industry.
- Optimistic Future Outlook: The company anticipates a 132% year-over-year revenue increase in the current quarter, reaching $18.7 billion, with adjusted earnings expected to grow more than fivefold, indicating strong profitability in the rapidly expanding memory market.
- Attractive Valuation: Despite a 250% stock price increase over the past year, Micron's trailing earnings multiple of 27 remains significantly lower than the Nasdaq-100's 26, suggesting that the market has not fully priced in its growth potential, presenting a compelling buying opportunity for investors.
- Strong Market Demand: The demand for memory chips is vastly outpacing supply, particularly for high-bandwidth memory used in AI accelerator chips, with server memory prices expected to potentially double in 2026, further enhancing Micron's stock price growth potential.
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 228.21 USD with a low forecast of 170.00 USD and a high forecast of 325.00 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.
29 Analyst Rating
26 Buy
3 Hold
0 Sell
Strong Buy
Current: 292.630
Low
170.00
Averages
228.21
High
325.00
Current: 292.630
Low
170.00
Averages
228.21
High
325.00
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.
