Micron’s Q3, outlook beat sees largely positive views from analysts

Shares of Micron Technology (NASDAQ:MU) rose about 2% premarket on Thursday after third quarter results and outlook surpassed estimates that also saw positive views from analysts.

Morgan Stanley kept its Equal-weight rating on the memory maker but raised the price target on the stock to $135 from $98.

Analysts led by Joseph Moore said that they were more than 20% ahead of consensus EPS for August and Micron guided in line with their number on the back of accelerating volumes as well as higher like for like average selling prices, or ASPs, in core DRAM.

The analysts added that big inflections are behind us, but still expect continued improvements in 2025 on the back of AI demand strength.

“We don’t think pull forward concerns or May quarter pricing declines should dent enthusiasm for the story here – MU remains an agnostic AI winner & conventional DRAM is still getting better. But we continue to see more compelling options in semis for those drivers,” said Moore and his team.

The analysts added that High Bandwidth Memory, or HBM, continues strong, hitting an over $6B run rate in May with Micron in a strong position. However, the analysts said, they remain mindful of the risks to that trajectory.

Consumer mix headwinds should fade from here and robust AI demand would continue supporting gross margins, according to the analysts.

Moore and his team said that tariffs are a factor, and management’s acknowledgment of that is a positive. However, the analysts noted that they do not see it as a big driver of recent strength.

Wells Fargo reiterated its Overweight rating on Micron and increased the price target on the stock to $170 from $150.

Analysts led by Aaron Rakers said HBM momentum (up about 50% quarter-over-quarter) and overall continued data center strength, coupled with tightening inventory levels (DRAM bit constrained into the first half of fiscal 2026), should leave investors focused on continued upside.

Jefferies’ analysts led by Masahiro Nakanomyo said Micron’s third quarter sales beat guidance, and the fourth quarter outlook is also above market expectations. Macro situation remains unclear (such as impact from tariffs), but no signs of change in 2025 memory demand at this point.

The analysts added that Micron expects HBM investment to be strong. In addition, for NAND,Micron expects increased investment in next-generation film deposition equipment.