Micron Technology (MU), a leading American semiconductor company, is gradually emerging as an important player in the world of high-stakes semiconductors. Recently, Micron reported solid fiscal third quarter results.
As a result, Citi analysts raised their stock price target from $130 to $150. This reflects the possibility of a 23.2% increase from current levels. Micron stocks have grown 45.6% since the start of the year, significantly surpassing the wider market index.
Find out if City Analysts are so optimistic about stocks and whether they’ll buy them now.
Citi analyst Christopher Denary’s price target upgrade follows stronger results and guidance than expected. The majority of the rise came from NAND rather than drums, but can explain the stock’s decline following revenue calls, but Danely remains bullish. Citi also raised its revenue estimates, citing the rebound of Micron’s increased exposure to artificial intelligence (AI) as a major growth driver.
Micron’s core business is manufacturing memory and storage products such as DRAM, NAND flash memory, and high bandwidth memory (HBM). It enables the digital world by providing data centers and memory and storage technologies that provide cloud computing, AI, and machine learning, smartphones, mobile devices, automobiles and consumer electronics. This usefulness is reflected in the company’s third quarter 2025 revenue. Total revenues rose 36.6% year-on-year to $9.3 billion. Adjusted net income increased 208% to $1.91 per share. The adjusted total margin increased from 28.1% in the previous year’s quarter to 39%. This surge was driven by strong demand from AI data centers, higher than expected DRAM pricing, and improved dynamics in the NAND market.
Micron has invested heavily in long-term innovation. It unveiled a multi-billion dollar project to expand its manufacturing footprint in the US. Despite the heavy investment, the company’s balance sheet remains strong, with approximately $12.2 billion in cash and marketable securities and $1.95 billion in free cash flow adjusted at the end of the third quarter. This gives the company the flexibility to invest in product innovation and weather volatility.
Looking ahead to the fourth quarter, management expects revenues of $10.7 billion (plus or minus $300 million). This represents a 39% increase from the fourth quarter of fiscal year 2024.
Analysts expect revenue to increase by 46.5% for fiscal year 2025 to $36.8 billion, up 28% from the previous year in fiscal year 2026. Similarly, it could increase by a staggering 501.9% in fiscal year 2025. Especially considering growth outlook, industries such as NVIDIA (NVDA) and Advanced Micro Devices (AMD) are in the industry.
Apart from Citi, many other companies are optimistic about MU stock following a strong third-quarter report. Barclays analyst Tom O’Malley, for example, has increased MU’s price target from $95 to $140 with a “buy” rating.
Similarly, KeyBanc has increased MU’s price target from $135 to $160, repeating its “overweight” rating. The company cited Micron’s strong third quarter results and better than expected Q4 guidance driven by favorable pricing, especially DRAM and HBM, improved product mix and strong demand.
DBS analyst Jim Hin Kwong Au has repeated his “buy” rating and price target of $149, citing the company’s strong position in the AI-driven memory market. Analysts believe Micron’s Advanced Technologies will be at the forefront of meeting the growing demand from AI data centers and GPU-driven systems. As pricing strength is expected to continue, he believes Micron will experience strong long-term revenue and margin growth.
Overall, on Wall Street, Micron stocks have a “strong buy” rating. Of the 30 analysts covering MU, 22 rated “strong buys”, 4 rated “medium buys”, 3 recommended “hold”, and 1 say “strong sells”. The average target price for the stock is $150.72, 23% above its current level. Additionally, the $200 street estimate means a 64% increase over the next 12 months.
On the date of publication, Sushree Mohanty had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published barchart.com
