Micron: Mixed Expectations For Earnings, Buy For The Long-Term (Earnings Preview)
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Michael Del Monte6.22K FollowersFollow5ShareSavePlay(9min)CommentsSummaryMicron Technology (MU) is refocusing on high-margin Cloud Memory, leveraging robust demand from hyperscalers and strong HBM chip adoption.MU’s Cloud Memory business, with 59% gross and 48% operating margins, is expected to drive margin expansion as product mix shifts away from Mobile & Client.I reiterate a Buy rating on MU with a $311 price target, based on 10.18x eFY27 EV/aEBITDA, reflecting durable growth and reduced cyclicality.Investors should be cautious ahead of Q1'26 earnings, as consensus expectations are high and near-term volatility is possible if results align with management's Q1'26 guidance. mesh cube/iStock via Getty Images Micron Technology (MU) is in the process of refocusing its portfolio more heavily on high-margin Cloud Memory operations as the market remains robust with increasing investment outlays for compute capacity across the major cloud services providers. With Micron beingThis article was written byMichael Del Monte6.22K FollowersFollowMonte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with expertise in the technology, energy, industrials, and materials sectors. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Analyst’s Disclosure:I/we have a beneficial long position in the shares of DELL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You