Bulletin
Investor Alert

Earnings Outlook Archives | Email alerts

June 29, 2022, 7:22 a.m. EDT

Micron earnings to provide more clues as to whether chip boom has passed

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Micron Technology Inc. (MU)
  • X
    NVIDIA Corp. (NVDA)
  • X
    PHLX Semiconductor Index (SOX)

or Cancel Already have a watchlist? Log In

By Wallace Witkowski

1 2

What analysts are saying

Evercore ISI analyst C.J. Muse, who has an outperform rating and a $90 price target, said he expects consumer weakness and data-center strength to balance each other out.

“Bigger picture, we believe the structural transformation now underway at Micron, along with an increasingly rational memory-industry backdrop, positions the company well to navigate the current slowdown,” Muse said.

“For investors with duration, today’s level is very interesting, particularly considering the significant strides Micron has made in recent years,” Muse said. That said, “given recession potential,” Muse said he sees $50 as “the close-your-eyes level” on the stock.

Another analyst who has a $50-a-share downside scenario price on the stock is BMO Capital analyst Ambrish Srivastava, who has an outperform rating and an $85 price target. Srivastava he expects lower capital spending at Micron as he expects memory-chip prices to go lower than his previous expectations.

“As major end markets, from PCs to handsets, which collectively make up a meaningful portion of the memory industry’s revenues, as well as that of Micron’s, decelerate more than what we were earlier thinking, we are lowering our estimates for Micron,” Srivastava said.

Read: Why semiconductor stocks are ‘almost uninvestable’ despite record earnings amid a global shortage

UBS analyst Timothy Arcuri, who has a buy rating and a $115 price target, said he thinks that “investors continue to overlook several key factors” on the stock.

While PC and smartphone weakness is a concern, Arcuri expects strong prices going into 2023 as supply drops off again. Also, “demand should be cushioned” by new server platforms upgrading processors next year.

“We believe these company-specific factors have to some degree been lost in the investment debate on the stock as concerns around consumer demand have taken hold,” Arcuri said.

Of the 36 analysts who cover Micron, 32 have buy or overweight ratings, three have hold ratings and one has a sell rating, with an average price target of $96.74, or 67% higher than Tuesday’s close, according to FactSet data.

Get news alerts on Micron Technology Inc. — or create your own.
1 2
This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.