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Among other updates, Micron projects the memory/storage market to more than double by 2030 from $161 billion in 2021 to $330 billion.
Rosenblatt’s Hans Mosesmann noted that “Industry memory and storage dynamics continue to outpace overall semiconductor growth (increasing % of the overall mix), as data growth transforms the world driven by the digital economy, hyper connectivity, and AI/ML.”
Evercore ISI’s C.J. Muse added that “the clear focus was on product, technology, and manufacturing leadership that is enabling the company to deliver better than-industry top-line growth and sustained through-cycle free cash flow margins.”
The analyst noted that “a lot of bad news already embedded in Micron shares” with the current stock price ($67.71) seen as “a steal.”
Finally, Goldman Sachs analyst Toshiya Hari reiterated a Buy rating as he came away from the event with a better appreciation of the company. Still, he acknowledges many risks facing the company.
“Supply/demand dynamics and implications for pricing, earnings power, and FCF generation will likely remain top of mind for investors in the near-term, and if anything, we expect any bias to near-term estimates to be to the downside given potential pricing headwinds stemming from weakness in the smartphone, PC, and to a lesser extent, server end-markets, per our recent industry checks,” said Hari in a client note.
By Senad Karaahmetovic
