Micron Technology Inc (NASDAQ:MU) shares soared more than 15% to a record high of around $1,208 Thursday as analysts cheered a wave of long-term strategic agreements reshaping the investment case for the memory chipmaker.
Bank of America reiterated its Buy rating and lifted its price target to $1,550 from $1,500, while Wedbush maintained its bullish stance, with both firms pointing to Micron’s growing portfolio of strategic customer agreements (SCAs) as a defining development for the sector
Micron reported fiscal third-quarter revenue of $41.5 billion, up 74% year-over-year and well above the Street’s $35.9 billion estimate. Data center revenue hit an annualized run rate of approximately $100 billion. Gross margin came in at 84.9%, topping consensus of 81.7%, while non-GAAP earnings per share of $25.11 doubled quarter-over-quarter and surpassed expectations of $20.86.
Fourth-quarter guidance was equally striking, with Micron projecting revenue of $50.0 billion against the Street’s $43.6 billion estimate. Gross margin is expected to reach roughly 86%, with non-GAAP EPS guided to $31. The headline story was not just the results but what lies ahead.