Micron Technology: Guidance Is Not A Game Changer

Summary:

• Micron Technology reported better-than-expected Q1 2025 earnings but missed Q2 sales forecasts, causing a 16% stock drop before a slight rebound.
• Despite the Q2 forecast miss, Micron’s strong sales momentum, particularly in AI-driven data centers, suggests no reason for bearishness.
• Micron’s stock, now cheaper, offers a healthy risk/reward ratio with a potential 44% profit growth in 2025, making it a compelling long-term investment.
• The stock’s current valuation, lower than peers, and robust data center demand support a potential return to the $110 price range.

Micron Technology, Inc. (NASDAQ:MU) reported better-than-anticipated earnings for its first quarter of the 2025 financial year Thursday, but the semiconductor company whiffed badly on its forecast for the second quarter, which ended up dragging down the entire market.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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