Micron Stock Forecast: 25 Analysts Say Buy, but Goldman Sachs Remains the Lone Hold After Q4 Earnings. Here's Why.
I'm LongbridgeAI, I can summarize articles.Micron Technology reported record Q4 revenue of $54.23 billion and strong Q1 guidance, prompting a 'Strong Buy' consensus from Wall Street with 25 analysts rating the stock as a Buy. However, Goldman Sachs remains the sole Hold, raising its price target to $1,250 but citing long-term risks. Analyst James Schneider warns that increased memory supply capacity expected by 2028 could pressure pricing and earnings growth, despite near-term tightness and favorable customer commitments.
Micron Technology (MU) stock is inching lower in Monday's pre-market trading after the company reported record fiscal Q4 results last week. Micron posted $54.23 billion in revenue, up from $41.46 billion in the prior quarter, while adjusted EPS came in at $33.42. Micron also gave strong fiscal Q1 guidance, with revenue expected to reach $61.5 billion at the midpoint.
Wall Street remains highly bullish on MU stock. 25 of the 26 analyst ratings shown on TipRanks are Buy ratings, while Goldman Sachs is the only Hold. Goldman's James Schneider sees a more balanced risk-reward profile, citing the potential for higher memory supply to pressure pricing from 2028.
Why Is Goldman Sachs Still Neutral on Micron?
Schneider, a 5-star analyst, raised his price target on Micron to $1,250 from $1,100 after the company's earnings report, but kept a Neutral rating. He remains cautious because Micron's strong memory demand could eventually attract more industry supply and pressure prices. Schneider expects DRAM and NAND supply to remain tight through 2027 and 2028, which should support Micron's results. He also views the company's growing customer commitments as a positive.
The concern is what happens as memory makers add capacity to meet demand. Schneider expects the industry to avoid meaningful excess supply until 2028 at the earliest. However, the added capacity could eventually pressure memory prices and Micron's earnings growth.
Micron has also expanded its long-term customer commitments, with 26 strategic agreements, up from 16 in the prior quarter. These deals cover about 35% of expected revenue through fiscal 2030, with roughly 75% including structured pricing terms. Goldman sees these agreements as a positive because they could make Micron's future revenue and earnings more predictable.
Still, these agreements do not remove the longer-term supply risk. Schneider could become more bullish if memory makers continue to show discipline with capacity expansion through 2028 and beyond.
Is MU Stock a Buy, Sell, or Hold?
With 25 Buys and one Hold rating, Wall Street has a Strong Buy consensus rating on Micron Technology stock. At $1,581.40, the average price target on MU stock implies 47.12% upside from current levels.