Published March 21, 2025

12:32 PM EDT

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Key Takeaways

  • Micron stock slid Friday following the company’s fiscal second-quarter results.
  • Several analysts maintained bullish ratings, however, based in part on an improving outlook for its DRAM chips.
  • Investors may have reacted to Micron’s gross margin projections, which one analyst called a “fly in the ointment.”

Shares of Micron Technology (MU) turned lower Friday after the company’s fiscal second-quarter results a day earlier, but analysts have remained bullish on the memory chip company. 

Micron “has established technology leadership in [high-bandwith memory],” UBS analysts said after the results, and its DRAM chip business “should operate with more sustained supply/demand dynamics as long as AI continues to grow.” The bank maintained its “buy” rating and $130 price target. 

Despite initially rising after the results were released, Micron shares dropped around 8% intraday Friday. The chipmaker’s revenue and profit forecast came in above Wall Street’s expectations, but UBS said the company’s commentary on gross margins was “a bit of a fly in the ointment.” 

Citi analysts also reiterated a “buy” rating but trimmed their price target from $150 to $120 “given Micron’s persistent gross margin issues.” The bank raised its full-year sales and earnings per share estimates, driven by expected improvements in the DRAM market. Meanwhile, Wedbush raised its price target to $130 from $125, and Bank of America stood pat at $110.

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  1. UBS. “Micron Technology Inc. NAND Still A Bit of A Drag, But The DRAM Story Is On Track.”

  2. Citi. “Micron Technology Inc. Decent Results and Guide. DRAM Upturn Intact but Persistent Margin Softness Lowers Our Price Target. Reiterate Buy.”

  3. BofA Securities. “Micron Technology, Inc. Elusive GM recovery constrains EPS power, Neutral.”

  4. Wedbush. “Micron Technology Inc. HBM strength Moderates Weaker Commidity Conditions.”