Micron (MU) Delivers Strong Q3 and Upbeat Outlook, JP Morgan Hikes Target to $165

Micron Technology Inc. (NASDAQ:MU) is one of the 20 undervalued momentum stocks that are taking off. As per Q3 2025 (FY ends in August) earnings results announced on June 25, the company delivered record revenue, with data center sales more than doubling year-over-year and DRAM revenue reaching an all-time high, driven by nearly 50% sequential growth in high-bandwidth memory (HBM). The company generates strong free cash flows which support continued strategic investment, while a newly reorganized business structure aligns more closely with AI-driven demand.

Looking ahead, Micron expects 15% sequential revenue growth in the fourth quarter, reaching $10.7 billion. The company’s long-term potential is further reinforced by its recently announced $200 billion U.S. investment plan, focused on manufacturing and R&D to support sustained leadership in memory and storage innovation.

Micron (MU) Delivers Strong Q3 and Upbeat Outlook, JP Morgan Hikes Target to $165

An automated manufacturing production line of semiconductor components on an assembly line.

Following Micron’s May quarter results, on June 26, JP Morgan analyst Jay Kwon raised the stock’s price target to $165 from $135 while maintaining an Overweight rating. In his recent note, Kwon called the quarter as solid and pointed to a strong outlook for the upcoming quarter.

The primary reason for the improved sentiment is growing demand in key areas, especially the high-bandwidth memory (HBM) and data center products. Kwon also highlighted continued strength in consumer-related applications, which contributed to the company’s overall performance.

As a result, the analyst raised his earnings estimates for Micron, and sees a favourable setup for the stock in the second half of 2025, supported by improving fundamentals and a constructive demand environment.

Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and markets memory and storage products, including dynamic random-access memory (DRAM), flash memory (NAND), solid-state drives (SSDs), and High Bandwidth Memory (HBM) globally.

While we acknowledge the potential of MU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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