Micron Technology (MU) has turned the page on the industry’s bleak past, stepping into 2024 with renewed strength and strategic clarity. After the deep slump of 2022 to 2023, the global memory market has rebounded sharply, reaching $170 billion in revenue according to Yole Group.

The revival has been largely powered by artificial intelligence (AI) training demands in data centers, where high-bandwidth memory (HBM) has taken center stage. With its superior performance and pricing power, HBM continues to outshine the broader dynamic random-access memory (DRAM) segment, with its revenue expected to “nearly double” this year to around $34 billion.

At the core of this growth story is Micron. Its advanced offerings are engineered specifically for high-performance computing and AI applications. Beyond product innovation, Micron is backing its ambition with major capital, pledging $150 billion for U.S. memory manufacturing and another $50 billion for research and development.

With third-quarter earnings lined up for June 25 and MU stock brushing a 52-week high of $144.07, Micron’s next steps are drawing serious investor attention.

About Micron Stock

Headquartered in Boise, Idaho, Micron has cemented its place as a formidable player in the global memory and storage market. With a market capitalization of $136.4 billion, it operates under the Micron and Crucial brands, delivering DRAM, NAND and other products sitting at the heart of cutting-edge AI and compute-heavy applications.

In 2025, MU stock has staged a stellar rally, climbing 52% year-to-date (YTD). The last month alone has added 37% to its tally, painting a picture of strong investor confidence and upbeat momentum.

Trading at 19.6 times forward earnings, MU stock commands a valuation well above sector averages and comfortably above its own five-year norm, a clear signal of market optimism and long-term faith.

The company also continues to reward shareholders steadily. Micron offers an annual dividend of $0.46, translating to a yield of 0.38%. The latest quarterly dividend of $0.12, which was payable on April 15 to shareholders on record as of March 31, underlines Micron's steady commitment to investor returns.

Micron Surpasses Q2 Earnings

Micron unveiled its fiscal 2025 second-quarter results on March 20, which topped Wall Street forecasts. The company recorded revenue of just over $8 billion, reflecting a 38.3% year-over-year (YOY) increase and breezing past Wall Street’s expectation of $7.9 billion. What drove this outperformance was surging demand for its cutting-edge DRAM and HBM technologies.

Micron’s DRAM business led the charge, generating $6.1 billion, which marked a 47% jump compared to the same quarter last year. NAND revenues followed with a solid showing of $1.9 billion, up 18% YOY.

On the profitability front, non-GAAP operating income climbed to $2 billion while non-GAAP net income rose to $1.8 billion, both reflecting healthy YOY growth of 883% and 274%, respectively. Even more impressive, the company delivered non-GAAP EPS of $1.56, surpassing the prior year’s figure by 271%.

In terms of capital allocation, Micron reported net capital expenditures of $3.1 billion for the quarter. Adjusted free cash flow came in at $857 million. The company closed the quarter holding $9.6 billion in cash, marketable investments, and restricted cash.

For fiscal Q3, management expects revenue to land at $8.8 billion, with a flexibility margin of $200 million. Gross margin is projected at 36.5%, plus or minus 100 basis points, while EPS is forecast at $1.57 with a $0.10 range.

Meanwhile, analysts estimate Q3 2025 EPS at $1.43, marking a 232% YOY rise. For fiscal 2025, EPS is projected at $6.31, up 988%. Looking ahead, the fiscal 2026 bottom line is expected to hit $10.17, reflecting continued momentum with a further 61% increase.

What Do Analysts Expect for Micron Stock?

Micron is basking in bullish sentiment, with major analysts racing to revise their targets upward. Mizuho led the charge by lifting its price target to $130 from $124, reaffirming its Outperform rating just ahead of Micron’s earnings. Citigroup analyst Christopher Danely echoed the optimism, boosting his target from $110 to $130. Wedbush took it even further, raising the bar to $150 from $130, citing a more upbeat memory pricing environment in the second quarter.

Wall Street sentiment remains strongly optimistic, assigning MU stock an overall rating of “Strong Buy.” Of the 30 analysts tracking the stock, 22 call it a “Strong Buy”, four lean “Moderate Buy,” three call it a “Hold," and just one analyst issues a “Strong Sell” rating.

The average price target of $127.48 is in line with current price levels. However, the Street-high target of $172 suggests that MU stock can climb more than 34%.