Micron Technology Stock Rises Ahead Of Earnings Despite Price Target Cut, Sparking Retail Buzz
By Stocktwits Inc | First Published Dec 18, 2024, 11:51 PM ISTThe uptick in Micron’s stock comes despite Bernstein lowering its price target to $120 from $140 while keeping an ‘Outperform’ rating on the stock.
Micron Technology shares rose nearly 2% in morning trading Wednesday as investors awaited the semiconductor giant’s first-quarter earnings report.
The company projected record revenue for fiscal Q1 2025, with expectations of significantly improved profitability throughout the fiscal year, during its September earnings call.
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Wall Street is expecting earnings of $1.56 per share on revenue of $8.4 billion, according to Koyfin data.
The uptick in Micron’s stock comes despite Bernstein lowering its price target to $120 from $140 while keeping an ‘Outperform’ rating on the stock, ahead of market open on Wednesday.
According to the research note reported by TheFly, the brokerage cited significant challenges in mainstream memory and China markets for the memory chip industry.
However, it believes High Bandwidth Memory (HBM) could help drive the industry to near-record profits in 2025, even though memory remains the most controversial sector in Bernstein’s current research coverage.
On Stocktwits, retail sentiment jumped into ‘extremely bullish’ territory from ‘bullish’ a day ago, as chatter remained at ‘extremely high’ levels.
While some investors feel that a potential earnings beat is already priced in, other see room for additional upside.
The debate stems from the U.S. Department of Commerce finalizing a more than $6.1 billion subsidy under the CHIPS and Science Act for the memory chip maker earlier this month.
The investment, initially announced in April, represents one of the largest government awards to chipmakers and aims to bolster domestic semiconductor manufacturing.
Retail sentiment is near its highest levels this year, recovering considerably from three months ago, when Morgan Stanley slashed its price target from $140 to $100 per share.
The brokerage warned that DRAM semiconductor chips are in oversupply, which will likely lead to weak profit margins across the broader memory market.
It also expressed concern that Micron's stock was overvalued, particularly given the company's current profitability challenges, dragging retail sentiment into the ‘bearish’ territory.
Micron shares have gained 34% year-to-date but are trading 30% lower than their 52-week high of $157.54.
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