Micron Technology stock faces intense scrutiny after surging past $1,200 per share this year, leaving investors divided on whether to sell. The company reported record fiscal Q3 revenue of $41.46 billion, a 346% annual increase, with EPS hitting $25.11. While bullish forecasts project a potential five-year price target near $4,864, bearish analysts like those at Morningstar maintain a fair value estimate of just $455, citing an expected industry downcycle.
Wall Street is split on whether it is time to sell Micron stock following its significant rally this year. Some analysts believe the run is getting long in the tooth while others think it is still early.
The debate follows Micron‘s exceptional fiscal third-quarter performance. Revenue reached $41.46 billion, up 346% from a year earlier, and earnings per share were $25.11, beating estimates by a wide margin.
For the fourth quarter, the company guided for approximately $50 billion in revenue. Gross margin also expanded dramatically to 84.6%, up from 37.7% a year ago.
Sanjay Mehrotra, the company’s Chairman, President and CEO, stated the results reflect the strategic value of memory in the AI era. “Micron’s record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era,” he said.
Bullish projections point to a potential five-year price target near $4,864, supported by high-bandwidth memory (HBM) supply sold out years in advance. However, analysts at Morningstar present a starkly contrasting fair value estimate of $455.
At the time of writing, the stock traded near $1,132.33, down 6.69% for the day, with a market capitalization of approximately $1.28 trillion. Despite the recent pullback, 46 of 49 covering analysts still rate Micron stock a buy.
