Micron, the renowned maker of computer memory chips, has received a boost in estimates from Wall Street analysts following its impressive quarterly report. The company's shares witnessed an immediate surge of 6% in premarket trading on Thursday, reaching $83.40. While competitors experienced slight gains, Micron's performance stood out prominently. Analog Devices recorded a 1.1% increase, Texas Instruments climbed by 0.6%, and Applied Materials saw a rise of 1.8%.
Thanks in large part to its chips compatible with artificial intelligence programs, Micron pleasantly surprised analysts by reporting a smaller loss than anticipated. Moreover, the revenue exceeded their predictions, enabling the company to raise prices and provide improved guidance for the current quarter.
The positive results prompted John Vinh from KeyBanc to elevate his estimates and increase the stock's price target to $100. Impressively, Micron shares had already soared by over 50% earlier this year.
Christopher Danely at Citi mirrored this sentiment by reiterating his Buy rating on the stock and raising the price target to $95 from $88.
Meanwhile, analysts at SIG, led by Mehdi Hosseini, also adjusted their estimates. Although they maintain a price target of $112, they acknowledge potential risks such as weaker demands and uncertainties surrounding management execution.
On a slightly more cautious note, the team at Piper Sandler, headed by Harsh V. Kumar, set a price target of $70. They attribute this more restrained outlook to the substantial gains already achieved by Micron this year.
In summary, experts are optimistic about Micron's future and recognize the broader industry's potential. Despite recent upward trends in stock prices reflecting these developments, the team at Piper Sandler reaffirms their Neutral rating.