Micron Earnings: Market Rebounds, Bearing Fruit and Raising Results, but Shares Are Out of Reach

We maintain our $70 fair value estimate for shares of no-moat Micron Technology after it reported good fiscal first-quarter results. The results bore no surprises, given Micron released results in late November. Still, we’re pleased to see the rebounds across both DRAM and NAND progressing, with prices continuing to rise from deep troughs earlier in 2023. Micron’s first-quarter results and second-quarter guidance are positively above our initial expectations, and we see this as market rebounds are happening earlier than we previously thought. Despite the pull-in of some sales into earlier quarters, we continue to hold expectations for Micron to return to roughly $30 billion in revenue in fiscal 2025 and 2026 and maintain our valuation. We see shares as overvalued.