Jim Cramer Expects Growth for Micron Technology (MU)

by MarketNewsData

Jim Cramer discussed Micron Technology, Inc. (MU) as a top stock pick.

Cramer highlighted the company’s growth potential and leadership in high bandwidth memory and data center markets.

Key Expectations

Micron has already updated its guidance upward for Q4 FY25:

  • Revenue: $11.2B ± $100M (raised from $10.7B ± $300M), up sharply from $4.01B a year ago when memory markets were in a downturn.

  • Non-GAAP EPS: ~$2.85 ± $0.07 (raised from $2.50 ± $0.15), compared with a loss of ($1.07) in the prior-year quarter.

  • Gross Margin: ~44.5% ± 0.5%, more than double last year’s 18.5%.

Analyst consensus lines up with Micron’s guidance: EPS ~$2.85 on revenue ~$11.1B.

Growth Drivers

  • AI Demand: DRAM and high-bandwidth memory (HBM) for data centers remain the largest tailwind, as AI workloads drive demand for more advanced memory.

  • Improving Pricing: Both DRAM and NAND pricing have strengthened through 2025 after years of oversupply.

  • Execution: Cost control and efficiency improvements have supported the sharp rebound in margins.

What to Watch in the Report

  1. Forward Guidance (Q1 FY26):
    Street wants to see momentum continue. A guide above consensus would reinforce the AI demand narrative.

  2. Segment Trends:

    • Data Center / AI: Expected to be the growth engine.

    • PC / Mobile: Still lagging, any signs of recovery will be incremental positives.

  3. Inventory Levels:
    Any commentary on channel health or oversupply risk will be key for pricing stability.

  4. Capex & Supply Discipline:
    Micron’s ability to balance production with demand will determine pricing power.

Stock Performance

  • Last Close: $157.23

  • 52-Week Range: $61.75 – $160.92

  • Stock has rallied more than 150% in the past year, breaking out as the memory cycle turned.

  • Technicals: recent highs near $160 serve as resistance. A breakout could open room toward $180–200; support sits near $145–150.

Market Sentiment

  • Analysts remain bullish: Citi raised PT to $175; several firms expect AI-driven demand to sustain upside.

  • Jim Cramer recently highlighted Micron as a top pick, boosting retail and institutional attention.

  • Elevated expectations mean Micron must at least meet guidance to avoid a pullback.

Investment Outlook

  • Bull Case: If Q4 revenue and EPS exceed the high end of guidance and Q1 guidance is strong, MU could break out toward $180–200 near-term, with potential for $200–220+ over 12 months if the memory cycle holds.

  • Base Case: Inline results and cautious but steady outlook likely keep MU in the $160–180 range.

  • Bear Case: Weak forward guidance, soft DRAM pricing, or inventory issues could drag shares back to $130–150.

Risks

  • Cyclicality: Memory pricing remains volatile, and oversupply could return.

  • Geopolitics: China/US trade restrictions may impact supply chain and customer base.

  • Capex Burden: Large investments required to scale advanced memory production.

Bottom Line

Micron enters earnings with momentum, upgraded guidance, and strong AI demand tailwinds. Expectations are high — a clean beat with bullish guidance could push MU to fresh highs, while even a small stumble may trigger profit-taking given the rally. Long-term, the company is well-positioned in the AI memory cycle, but investors must balance upside with inherent cyclicality risks.

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