Micron shares 1,040dollars, HBM supply sold out
Micron’s HBM supply for AI accelerators is sold out through 2026years, sending its share price up to 1,040dollars. The company guided for a gross margin of 68%, but the share price is above the average analyst target of 717dollars.
Micron’s share price has risen about 1% over the past 900years and is trading at 1,040dollars. The company cited the sellout of high-bandwidth memory (HBM) supply for AI accelerators as the reason behind the rise. The company said this supply had been secured through multiyear contracts.
The company announced that HBM orders are filled through 2026years. The company explained that this increases visibility into revenue and earnings. It said the multiyear contracts support the continuity of the orders.
Micron provided a gross margin outlook of 68%. Based on this figure, the company offered a strong earnings growth outlook. Specific earnings figures and assumptions are expected to be disclosed in future earnings announcements.
The current share price is well above the average analyst target of 717dollars. The market has raised the question of whether this gap reflects a structural revaluation or an overvaluation driven by momentum. The current share-price level compared with analyst targets has been mentioned repeatedly in reports.
Micron's next quarterly earnings release is reported to be scheduled for 6month 24day. HBM shipment volumes and gross margins are expected to be confirmed in the release. The company plans to answer investors' questions through the earnings announcement.
Reports said that both bullish and bearish perspectives coexist regarding the current situation. On the one hand, sold-out supply and multiyear contracts were viewed positively. On the other hand, the fact that the share price is well above the consensus target has been cited as a risk.
Sources: Investing.com
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