6. Micron Technology, Inc. (NASDAQ:MU)
Average Analyst Price Target Upside: 36.51%
Number of Hedge Fund Holders: 120
One of the best long term tech stocks, Micron Technology, Inc. (NASDAQ:MU) is a well-known supplier of advanced memory and storage solutions that play an important role in various applications, including computers, smartphones, servers, and data centers.
The company’s ability to innovate and manufacture state-of-the-art memory products has been a key driver of growth in the digital economy. It specializes in several types of memory, including DRAM (Dynamic Random Access Memory), NAND flash, and NOR flash, which are integral components in a vast range of technology products, from personal devices to enterprise-level infrastructures.
The company’s products are widely recognized for their high performance, reliability, and energy efficiency, making them essential in today’s tech landscape. Beyond its core memory offerings, it provides a range of services designed to support customers throughout the product lifecycle. These include design and development assistance, comprehensive testing and validation, and effective supply chain management solutions.
The company recently reported its fiscal fourth-quarter earnings on September 25 and it surpassed analyst expectations. Revenue for the quarter reached an impressive $7.8 billion, a remarkable 93% increase compared to the same period last year.
Adjusted EPS soared to $1.18, a significant recovery from an adjusted loss of $1.07 in the previous year. The results not only beat forecasts but also showed a strong turnaround for Micron Technology, Inc. (NASDAQ:MU).
The guidance provided for the upcoming quarter projects revenue of $8.7 billion and adjusted earnings of $1.74 per share, both of which exceed analyst predictions of $8.32 billion and $1.52 respectively.
Much of this success can be attributed to the ongoing demand for high-bandwidth memory chips, especially in AI computing platforms. CEO Sanjay Mehrotra emphasized the company’s optimistic outlook in the fiscal Q4 press release, forecasting record revenue for fiscal Q1 and substantial growth in profitability for fiscal 2025. The positive guidance indicates not only a strong current performance but also a promising trajectory for the future.
Additionally, the stock has a Strong Buy rating from 42 analysts. As of September 26, the average price target of $150.00 implies an upside of 36.51% from current levels.
Parnassus Investments stated the following regarding Micron Technology, Inc. (NASDAQ:MU) in its Q2 2024 investor letter:
“Micron Technology, Inc. (NASDAQ:MU) posted fiscal third-quarter results that met expectations. Micron’s DRAM (dynamic random access memory) and NAND (non-volatile storage technology) segments grew revenue strongly, continuing the company’s recovery from a cyclical downturn last year. We believe Micron is well positioned to capitalize on AI-driven demand for greater memory.”
