Micron Stock Falls but Analysts Are Bullish Despite Gross Margin ‘Fly in the Ointment’ | Global News Avenue

Micron Technology’s Stock (mu) Turned after Friday The company’s second-quarter financial results A day ago, but analysts were still optimistic about Memory Chip.

UBS analysts said after the results that Micron “has established technical leadership in (high frequency memory) and that its DRAM chip business “can operate as long as there is continuous supply/demand dynamics. AI Continue to grow. ” The bank maintains its “buy” rating and a price target of $130.

although Initially rising After the result was released, Micron’s stock fell About 8% of the session were intraday Friday. Chipmakers’ revenue and profit forecasts exceed Wall Street expectations, but UBS said the company’s Gross profit margin It’s “a little fly in the ointment”.

Citi analysts also reiterated the “buy” rating but raised their target from $150 to $120, given Micron’s ongoing gross margin issues. ” The bank has increased its annual sales, Earnings per share The estimate is driven by the expected improvement in the DRAM market. Meanwhile, Wedbush raised its price target from $125 to $130, while Bank of America’s PAT is $110.