Micron (MU) Raises the Bar for Q4, Mizuho Stays Bullish on HBM Upside

Micron Technology Inc. (NASDAQ:MU) is one of the best large-cap tech stocks to buy now. While the overall performance of the stock has been strong with YTD gains of over 41%, the rally so far has been volatile. From trading at $95-$100 levels throughout the first quarter of the year, the stock plunged to $65 in April, staged an impressive surge to $127 by June, and has since settled closer to an average of $116. But this volatility has not dampened bullish sentiment. In fact, for some, it has made the story more compelling.

One such optimist is Mizuho analyst Vijay Rakesh, who on July 18 reiterated his Outperform rating and $150 price target, calling the recent pullback a buying opportunity. He expects the company to deliver a strong performance in the second half of 2025, with high-bandwidth memory (HBM) playing a key role. Larger deal sizes in HBM are projected to lift selling prices by 15%–20%, supporting revenue growth.

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Rakesh favours semiconductor names showing both sales momentum and margin improvement, and he believes Micron fits that profile. He also sees the company increasing its market share in HBM by 2026, which would further strengthen its competitive position.

That thesis got a boost on Monday, August 11, when Micron raised its Q4 FY 2025 (FY ends in August) revenue and earnings guidance, driven by better execution and improved pricing, especially in DRAM. Management now expects sales for the quarter to be in the range of $11.1 billion to $11.3 billion, up from $10.4 billion to $11 billion earlier. It also raised adjusted gross margins guidance for the quarter to 44% to 45%, compared with an earlier guide of 41% to 43%. As a result, EPS is now expected at $2.78 to $2.92, versus $2.35 to $2.65 earlier.

Such upward revisions underscore both the demand strength and the pricing power Micron is enjoying in its core markets.

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.

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