Boise, Idaho-based Micron Technology, Inc. MU is an industry leader in innovative memory and storage solutions, transforming how the world uses information to enrich life for all. With a market cap of $104.3 billion, Micron’s operations span the Americas, Europe, and Indo-Pacific.
Companies worth $10 billion or more are generally described as “large-cap stocks,” Micron Technology fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the semiconductor industry. The company offers an extensive portfolio of high-performance DRAM, NAND and NOR memory and storage products through its Micron and Crucial brands.
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Despite its notable strengths, MU has slipped 42.5% from its all-time high of $157.54 touched on Jun. 18, 2024. Furthermore, the stock has plunged 9.3% over the past three months underperforming the S&P 500 Index’s ($SPX) 3.3% dip during the same time frame.
Micron has underperformed the broader market over the longer term as well. MU stock has declined 4.8% over the past 52 weeks and gained 2.2% over the past six months, lagging behind SPX’s 13.9% surge over the past year and 5.8% gains over the past six months.
To confirm the downward consolidation, MU has remained mostly below its 200-day moving average since early August with some fluctuations and traded along its flat 50-day moving average over the past several months.
Micron Technology’s stock prices plummeted 16.2% in the trading session after the release of its Q1 results on Dec. 18. Driven by robust growth in data center business, MU’s revenues surged by a robust 84.3% year-over-year to $8.7 billion. Meanwhile, the company reported an even more impressive growth in profitability. Its net income for the quarter skyrocketed to over $2 billion, up from the $1 billion net loss reported in the year-ago quarter.
However, Micron’s Q2 guidance fell significantly below the Street’s expectations. It gave a midpoint guidance of $7.9 billion for sales, representing a significant quarter-on-quarter decline. While its non-GAAP EPS guidance of $1.43 also missed analysts’ projections by a large margin, making investors jittery.
Micron Technology has also underperformed its peer Texas Instruments Incorporated’s 
TXN 13.7% surge over the past 52-week period.
Nonetheless, analysts remain optimistic about the stock’s longer-term prospects. MU has a consensus “Strong Buy” rating among the 30 analysts covering the stock. Its mean price target of $132.45 represents a 46.3% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.