Cantor Fitzgerald Raises Micron Price Target to $155

Cantor Fitzgerald analyst C.J.

Muse raised the price target on Micron Technology (NASDAQ: MU) to $155 (from $145) while maintaining an Overweight rating.

“Investors were expecting a strong beat and raise but this was well above just about everyone’s expectations.

We highlight August Q guide included robust upside to revenues ($10.7B guide vs. cons $9.9B and our previewed $10.1B+), gross margins (42.0% vs our previewed 40%), and EPS ($2.50 vs. cons $2.03).

Mgmt acknowledged some tariff-related pull-ins but suggested the secular trends in both Data Center and HBM memory combined with a cyclical recovery in NAND are more important drivers of the recovery and that a return to tight/normalized inventory exiting August FY25 sets the stage for a strong recovery to continue through the remainder of CY25 and into FY26, and we readily agree.

HBM revenues reached $6B+ run-rate in the May Q, and we model a $10B run-rate business exiting CY25 (or 20% of total revenues).

Limited clean room availability coupled with a trade ratio closer to 4:1 for HBM, combined with end of life of D4, is setting the stage for continued tight DRAM bits, particularly with the HBM industry transitioning to HBM3E 12H and HBM4 in the coming months/year.

NAND continues to improve as well, helped by structural reduction in wafer output and expectations for inventories to normalize exiting August FY25.

Finally, with bits now expected to be tight, look for mix to turn to a tailwind (vs. consumer-driven headwind in the May Q).

This, coupled with ongoing improvement in HBM yields and expected transition to HBM4, should enable a continued strong GM ramp in 2HCY25/2026.

Add it all up, and CY25 EPS is now tracking closer to $9.00 (consensus $7.59), and we are raising our CY26 EPS to $14.00 (well above consensus of $11.68).

With shares now only 9x our updated CY26 EPS estimate, we reiterate our Overweight rating, and Micron remains a TOP PICK.

And with our increased earnings outlook, we tweak our price target to $155 from $145 (equates to 11x our new CY26 EPS estimate).”

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