Stock Price & Analysis

Buy MU stock as it shows strong earnings and positive guidance, with analysts raising price targets.

Micron Technology (MU) stock is expected to reach $120 by the end of 2025. This prediction is supported by strong demand for memory products, particularly in AI applications, and improving fundamentals despite short-term margin pressures. Analysts maintain a positive outlook with a mean price target of $132, indicating significant upside potential.

The S1 support level for MU Stock is $86.34 ,The R1 resistant level for MU Stock is $102.07.

As of the end of day on 2025-04-02, the price of MU Stock was $87.88.

The target price for MU Stock according to analyst rating is 129.65, with the highest price target at 200.00 and the lowest at 84.00. Analysts have a Strong Buy rating on MU Stock overall.

The market cap of MU is $99.1B.

Analysis and Insights

Micron Technology (MU) appears to be overvalued based on several key metrics and analysis:

1. Valuation Metrics:

   • PE Ratio: MU's trailing PE ratio of 28.18 is significantly higher than its historical average and industry peers, indicating a premium valuation.
   • EV/EBITDA: The EV/EBITDA ratio of 9.44 suggests moderate valuation, but combined with the high PE ratio, it points to overvaluation.
   • Price-to-Sales (P/S): At 3.81, this metric is elevated, reflecting high market expectations for future growth.

2. Recent Earnings and Guidance:

   • While MU reported strong Q2 results with revenue of $8.05 billion (beating estimates of $7.89 billion) and EPS of $1.56 (vs. $1.42 expected), the stock has struggled post-earnings due to margin concerns and high expectations already priced in.

3. Analyst Sentiment:

   • Analysts have mixed views, with some raising price targets citing strong HBM performance, while others have lowered targets due to margin pressures and valuation concerns.

4. Technical Analysis:

   • The stock is trading near its lower Bollinger Band, suggesting potential oversold conditions, but the RSI of 47.88 indicates a neutral position.

5. News Sentiment:

   • Positive developments like record HBM revenue and strong AI demand are offset by concerns over margin pressures and high valuation.

Conclusion

MU is overvalued due to high valuation metrics and mixed analyst sentiment, despite strong fundamentals. Investors should exercise caution and consider waiting for a price correction or improved margin visibility.

Micron Technology, Inc. is a provider of memory and storage solutions. The Company offers 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 segments include Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU). The CNBU segment includes memory products and solutions sold into client, cloud server, enterprise, graphics, and networking markets. The MBU segment includes memory and storage products sold into smartphone and other mobile-device markets. The EBU segment includes memory and storage products and solutions sold into automotive, industrial, and consumer markets. The SBU segment includes SSDs and component-level solutions sold into enterprise and cloud, client, and consumer storage markets. It sells its products into various markets through its business units in numerous forms.

Micron Technology (MU) stock is predicted to reach $200 by 2030, driven by strong Q2 results, improving AI demand, and analyst price targets. Analysts have raised targets, citing robust fundamentals and AI growth potential.

MU has a total of 43000 employees.