JPMorgan Sees Micron Beating Q4 Estimates as HBM Shortage Persists Through 2028
MU has more than doubled off its 52-week low of $155.18.
Summary
JPMorgan analyst Harlan Sur reiterated an Overweight rating and $1,540 price target ahead of Micron's Q4 report due Sept. 30, expecting the company to beat Street estimates and raise guidance. Sur projects August-quarter revenue above $51.4B, gross margin above 86.2%, and EPS above $31.73, driven by DRAM ASPs rising over 20% sequentially and NAND prices up about 20%. He also expects November-quarter guidance to exceed consensus of $56.3B revenue, 86.5% gross margin, and $35.71 EPS. The analyst sees HBM shortages of 20% in 2026, 19% in 2027, and 16% in 2028, with cumulative shortage reaching 23 weeks by 2028, supporting continued pricing strength. Micron's SCA coverage is projected to rise from over 35% to more than 50% of bit production, and free cash flow is expected to top $24B in August quarter. Following the Dec. 9 CHIPS Act anniversary, Micron plans to return 100% of excess cash via buybacks, with JPMorgan forecasting $200B cumulative free cash flow through 2027. This preview adds specific forward-looking estimates and a detailed supply-demand outlook that could influence positioning ahead of the earnings report.
At the time of this announcement, MU was trading at $1,055.61 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.2T. The 52-week trading range was $155.18 to $1,255.00. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Benzinga.