Micron Expanded Loss Projection: Micron Technology (MU.O) expects worse finances in Q1, leading to a 2.4% share drop. This remains true despite the company’s plans to prepare for new product lines and become a seller to Nvidia (NVDA.O), a major semiconductor company.
Micron, based in Idaho, surprised with a higher-than-expected first-quarter revenue prediction. What caused this profit? The AI business growth is a big reason for Micron’s memory chip demand.
In the financial scene, Micron announced its collaboration with Nvidia to incorporate its high-bandwidth memory chips into Nvidia’s computers.
Investors are optimistic due to rising demand for high-bandwidth memory chips driven by Nvidia’s partner, SK Hynix. People say Micron could ride this wave through rough waters of slow recovery in other markets.
During a conference call, Sanjay Mehrotra from Micron discussed company plans. He said the new chips could generate millions of dollars next year. With this news comes a bold prediction: In Micron’s FY2024 H2, its balance sheet should have positive gross earnings.
Also Read: Senator Schumer Ambitious Plans : New Yorks Semiconductor Renaissance
Micron wisely avoided the high-bandwidth chip scene. Sumit Sadana, Micron’s Chief Business Officer, discussed this risk with Reuters. The goal is clear: Micron aims to increase profits in the next fiscal year through improved chip production.
Sadana arrogantly claimed that Micron’s chip samples are superior to competitors’. What’s changed? It’s faster and uses less power. Some clients were sceptical until they witnessed the surprising real-life application of the data.
Micron predicts adjusted sales for the current quarter to be between $4.40 billion and $4.60 billion, a $200 million range. According to LSEG records, earlier estimates were $4.20 billion, which is higher. Micron expects an adjusted loss per share of $1.07, worse than analysts’ expected 95 cents.
Sales increased to $4.01 billion, surpassing the $3.91 billion forecasted earlier, providing clarity for the fourth quarter’s financial outlook. Micron uses high-bandwidth chips and strategic partnerships to navigate the complex semiconductor industry.
Our Reader’s Queries
What is Micron outlook for 2024?
Experts are forecasting a significant revenue boost of 48% to $22.9 billion for the entire fiscal year of 2024. This impressive growth trend is expected to continue with a projected 38% year-over-year surge, reaching $31.7 billion in FY 2025. Furthermore, analysts predict that the company will achieve profitability by fiscal 2025.
What is the projection for Micron stock?
According to 33 analysts, Micron Technology Inc’s stock price is expected to reach a median target of 95.00 within the next 12 months. The highest estimate is 140.00, while the lowest is 65.30. This represents an 11.31% increase from the current price of 85.35.
What is the price target for Micron in 2023?
Analysts have revised the average one-year price target for Micron Technology (NASDAQ:MU) to $85.10 per share, marking a 5.84% increase from the previous estimate of $80.40 as of November 26, 2023. This target is an average of multiple targets provided by analysts.
Is Micron stock a buy sell or hold?
Micron has received a Strong Buy rating from 24 Wall Street analysts, according to the consensus. This indicates a positive outlook for the company’s future performance.