Micron Technology Reports Strong FY25 Results, Analysts Raise Price Target to $200

Micron Technology reported a 50% YoY revenue increase to $37.4 billion in FY25, driven by its data center business with 52% gross margins and HBM revenue reaching $2 billion in Q4. Citi raised Micron's price target from $175 to $200 and maintained a Buy rating, indicating a 19.36% consensus upside potential. The company's market cap of $176 billion suggests strong investor confidence in its long-term growth.

Micron Technology, Inc. (NASDAQ: MU) reported a remarkable financial performance in its fiscal year 2025 (FY25), with a 50% year-over-year (YoY) increase in revenue to $37.4 billion. This impressive growth was largely driven by the company's data center business, which accounted for 52% of the total revenue and boasted gross margins of 52% Micron’s Record-Breaking Year Sends MU Stock Toward $200 Amid HBM Competition^[1]. Notably, high-bandwidth memory (HBM) revenue reached $2 billion in the fourth quarter (Q4) of FY25, highlighting Micron's strong position in the AI-driven data center market.

The company's stock has seen significant appreciation, with a 106% year-to-date (YTD) gain, reaching a market valuation of $202 billion. Citi analysts have raised Micron's price target from $175 to $200, maintaining a Buy rating and indicating a 19.36% consensus upside potential Micron’s Record-Breaking Year Sends MU Stock Toward $200 Amid HBM Competition^[1]. The company's market capitalization of $176 billion reflects strong investor confidence in its long-term growth prospects.

Micron's Q4 FY25 earnings report showcased robust performance, with revenue of $11.32 billion, a 46% YoY increase, and adjusted earnings per share (EPS) of $3.03, exceeding analysts' projections Micron Q4 FY 2025 Earnings Top Estimates on DRAM and HBM Strength^[2]. The company's data center segment, which now accounts for 56% of its total sales, delivered strong margins as demand for AI-optimized memory chips accelerated worldwide.

Despite the positive financial performance, analysts caution about potential oversupply and increasing competition in the high-bandwidth memory market. Micron's ability to sustain its growth will depend on its innovation and market positioning amidst a rapidly evolving competitive landscape. The company's strategic positioning in the AI memory space, coupled with its strong execution, has delivered an outstanding year, boosting investor confidence and sector momentum.

As the AI chip market expands, competition could intensify, particularly in HBM production, potentially impacting margins in the longer term. However, Micron's strong execution and strategic positioning in the AI memory space have delivered an outstanding year, boosting investor confidence and sector momentum. The company's next challenge will be to defend its market share and sustain profitability amidst an increasingly crowded and competitive field.

If Micron maintains its innovation pace and capitalizes on booming AI demand, it could extend its impressive growth streak—though investors will remain vigilant about market dynamics and rivals' expansion strategies.