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Micron sells off after Q3 guidance fails to signal a meaningful near-term recovery
12:07:20 PM ET, 03/21/2025 - Briefing.com
After initially springing higher on decent earnings and revenue upside in Q2 (Feb), shares of Micron (MU -8%) quickly reversed course and sold off. The memory chip maker's guidance is driving today's downbeat reaction. MU guided to Q3 (May) adjusted EPS of $1.47-1.67, in-line with consensus, and revs of $8.6-9.0 bln, which was higher than consensus. While the guidance was decent, far better than the soft outlook MU provided in December, it ultimately did not signify a meaningful change in trend.
Recall last quarter, MU commented that consumer-oriented markets were weak, likely staying this way through Q2. However, management anticipated a return to growth during the back half of FY25 (Aug). As such, the market was looking for signs of this trend. At the midpoint of its Q3 revenue guidance, MU is targeting a 29% increase yr/yr, a further deceleration from the 38% jump posted in Q2, not much of a significant rebound. Given the bubbling macroeconomic uncertainty, which can cloud the timing of a recovery across the consumer electronics market, this guidance is not providing any relief today.
There were several silver linings from Q2 worth mentioning. Data center DRAM revs reached a new record. High bandwidth memory, or HBM (vital in AI workloads), surged by over 50% sequentially to a new milestone of over $1.0 bln in revs. MU commented that its HBM shipments were ahead of schedule. As a result, revs of $8.05 bln landed near the high end of MU's $7.7-8.1 bln guidance in Q2. AI remains a powerful driver of overall demand at MU. Major hyperscalers (Amazon, Microsoft, Google, etc.) reiterated substantial yr/yr capital investment growth earlier this year for 2025, creating a sturdy foundation for MU. The company expects mid-single-digit server unit growth in 2025, supported by traditional and AI servers. On that note, MU increased its HBM TAM estimate by $5 bln from last quarter to now exceed $35 bln. However, speaking of HBM, a possible threat looms in the distance. MU competes against two main DRAM suppliers, one of which is Samsung (SSNLF). Currently, MU is qualified as a supplier of HBM, alongside its other competitor SK Hynix, for NVIDIA's (NVDA) GB300, its highest-performing AI system for enterprises. If Samsung is qualified, it could significantly disrupt MU's position in this market. Meanwhile, MU's other segments are facing a weak economy. In PC, MU is still confident that the market will grow by mid-single digits in 2025, with growth weighted to the back half of CY25 due to the Windows 10 end-of-life in October. In mobile, MU's projections for volume growth in 2025 stayed at a low-single-digit percentage but was optimistic about ongoing AI adoption fueling increased DRAM demand. Lastly, in industrial and automotive, customers are in the later stages of inventory adjustments.
THIS is how you know it's rigged. You can't get a better ER than that. I don't know why I even wait for these ERs. I ALMOST bought puts on DG, bc i KNEW it was going to be a bad report.....and it was, like all other retail. It went up. Games.
Nice share price up move of 6% pi day, today. GLTA
MU share price Double Top Breakout on 12-Mar-2025. GLTA
Double Top Breakout on 14-Feb-2025. GLTA
Worried they are going to start treating MU like INTC and AMD.....
I understand that MU's chips are used in Elon's systems (Cars, AI, ETC.). I think it is April 12th that Elon will be having a conference call with business and investors - I wonder what he will be talking about - chips?
As expected, MU share price ASCENDING TRIPLE TOP BREAKOUT on 21-Jan-2025.
MU share price chart appears readying for an uptrend.
We shall see. GLTA
MU share price Long Tail Down since 19-Dec-2024 in chart. This is positive.
Usually a price breakout may follow. Price is already above by 4.18% from my purchase price. GLTA
11000 SHARE BUY MID 86S $$$$$$
Institutions will continue to sell off into end of year. Outlook questionable
This didn't age well :(
MU $8 EARNINGS NXT 12 MTHS. $12 NXT 2 YEARS. HUGE BUYBACK ALSO. STOCK SOLD OUT FOR NXT YEAR
i bought bunch more $$$$$$$$$$$$$$$$$. stock worth 2x
Wow! MU took out yesterday's Key Reversal HOD! A sure sign it wants to break out! And the 50 day MA turned higher on Monday!
Absolutely NOT the case for MU.
Some analysts expects far less than we saw in these earning.
MU on the Up & UP from here !
I’ll buy on every dip below $100…
GLTA
already priced in, markets usually price stocks 6-8 months in advance
the market already priced in 200 bips in rate cuts through next September 2025
that means stocks are FULLY VALUED at 5700 on SP 500 and the QQQs are way overpriced
fair value for SP 500 is 4400-4700 at best
MU back under $100 sooner than many realize
dont know where i read it or heard it. they r going from millions to billions nxt 12 mths on their new memory. if you look deep enough you will see $8 then $12 earnings in two years. did you see ceo on cnbc today.? ceo said co never been in better place financially
up up and away. some people will sell into big pop
This is the new norm. My stocks fade every day and power hour is a thing of the past!
Amazing opportunity with MU ! Keep it UP !!!
GLTA
ceo just on cnbc. monster bullish. he did interview or read somewhere that he expects $8 in next 12 mths then 12$ in 24 mths. i estimated the last 2 earnings growing at 20% to fit into that $8. which will be higher. he is sold out on hbm for two years. all those chips going into nvda blackwell. 30 pe gets to 240/360
1hot toddy :Where do you get those numbers? Do you have a link to that?
Let's see this go back to mid 100s where it belongs!!!!!
EARNINGS $$$ 1.18/1.74/2.25/2.75 THEN $12 NXT 24 MTHS $$$$$$$$$$$ VERY UNDERVALUED
$200/240 THEN $300/340
mu sold out for 2 years. $8 in 12 mths and $12 in 24 mths. this is coming from mu. 25 pe and its 200/300. 30 pe 240/360
most of them said mu earnings would be down. they know nothing . stock very undervalued. 200 in 12 mths, 300 in 24 mths or more. thats with 25 pe. 30 pe and 240 in 12 and 360 in 24 mths.
mu making $8 share in next 12 mths and $12 share in 24 mths. 25 pe. $200 and $300 easy
Bought $MU Jan 17 110c today. Looking good
Thinking NOT so with their forward looking statements.
There are always pull backs, but long term - MU is aces.
GLTA
Damn. Wish I bought more on that dip last week.
fade the rally. MU will sell off all day tomorrow if not, definitely friday as people book profits on this overzealous move of 15%
inflation is going to ramp back up
Exactly. Who cares what they say.
MU $300 in 2 years… IMO
And of course, Wedbush just cut price target to 140 from 170.....on the day of earnings. I think these analysts gradings are criminal!
MU earnings 9/25 at 3:30 CMT.
Thursday will be good
Glad to be in today MU !
This sucks, a month ago it was on fire.
Mycrap gonna pay NLST for patent infringement!!!:)$$$
Headed to the 80's like I predicted!! Here's one of my plays you can track!! I'm in COIN at 193 been loading today trying to get my average down!! Will hold long term!! I think it will break all time highs beginning of 25!! Wish me luck!! Lol!!
Headed to the 80's!! Little brother position!!
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