Micron Technology (NASDAQ: MU) stock climbed 5.6% in pre-market trading Monday following an upbeat revision to its fiscal fourth-quarter outlook, driven by stronger pricing and solid operational execution. The Boise-based memory chipmaker now forecasts Q4 revenue between $11.1 billion and $11.3 billion, with a midpoint of $11.2 billion — well above its prior guidance and exceeding analyst consensus estimates of $10.74 billion.
The company also raised its non-GAAP gross margin guidance to 44.0%-45.0% (midpoint 44.5%), up from an earlier range of 41.0%-43.0%, signaling improved profitability. Earnings per share guidance was boosted to $2.78-$2.92 (midpoint $2.85), surpassing the previous forecast and analyst expectations.
Micron attributed the improved outlook largely to better pricing conditions, particularly in DRAM products, alongside strong execution across AI/datacenter, smartphone, and PC markets. Executive Vice President and Chief Business Officer Sumit Sadana is scheduled to provide further details in a fireside chat at the 2025 KeyBanc Technology Conference in Utah.
Building on this positive momentum, TD Cowen has reiterated its Buy rating on Micron and maintained a $150 price target following the company’s strong preannouncement of August quarter results. According to InvestingPro data, Micron, valued at approximately $139.7 billion, has gained 35% over the past six months, trading near its fair value.
TD Cowen’s analysts upgraded their November quarter EPS estimate from $2.90 to $3.13, describing their outlook as “cautiously optimistic.” The firm highlighted Micron’s robust financial health and noted that 10 analysts have recently raised their earnings projections. While some near-term questions remain about the durability of this momentum, TD Cowen expects Micron to benefit from the growing artificial intelligence investment trend.
The $150 price target reflects a multiple of 12 times calendar 2026 EPS, compared to the current trading multiple of 9-10 times 2026 consensus estimates. A key potential catalyst is the high-bandwidth memory (HBM) revenue opportunity anticipated in 2026, which could justify an even higher valuation.
Other major analysts have echoed the bullish sentiment. JPMorgan recently raised its price target to $185 with an Overweight rating, while Cantor Fitzgerald and UBS reaffirmed their $155 price targets, citing Micron’s improving outlook. Bank of America Securities retained a Neutral rating and $140 target, noting broad strength in DRAM and NAND markets, and Barclays also maintained an Overweight rating with a $140 target.
Overall, Micron’s outlook signals a notable shift in the semiconductor sector, fueled by demand for memory products in AI applications and other growth markets.
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