Analyst Says Micron (MU) Upside Already ‘Baked In’ Despite Strong Guidance

We recently published 10 Stocks to Watch as Investors Scramble to Pour Money into AI Trade. Micron Technology Inc. (NASDAQ:MU) is one of the stocks that caught analysts’ attention.

William Kerwin, Morningstar analyst, said in a latest program on CNBC that Micron Technology Inc (NASDAQ:MU) guidance blew market expectations “out of the water.” However, the analyst, who has a neutral rating on the stock, said most of the upside for Micron Technology Inc (NASDAQ:MU) is already reflected in its stock price. He believes in the long term, cyclicality in the memory industry will continue to impact the company.

“Well, we think buying in at these levels is assuming even more upside from here. And we think a lot of that upside is already baked in. As I said earlier, this outlook for the first fiscal quarter is really exceptional and well above estimates coming in. But the relatively modest stock pop shows that a lot of that upside was already being baked into investors, and this really met maybe some of those buy side expectations even if it exceeded the sell side consensus estimates.”

Micron Technology Inc (NASDAQ:MU) recently posted strong fiscal Q4 results and issued an upbeat fiscal Q1 guidance. The company expects its Q1 EPS to be in the range of $3.60 to $3.90, while revenue is expected to come in between $12.2B to $12.8B. Both metrics came in ahead of Wall Street expectations.

Here is what they have to say about Micron Technology Inc. (NASDAQ:MU) in their investor letter:

“Micron Technology Inc. (NASDAQ:MU) shares advanced due to the company’s strong position in the AI-driven memory market. Management noted robust demand in its latest quarter.”

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.