Why Micron’s Stock Is Rising In Premarket Today

Micron Technology, Inc. (MU) shares climbed nearly 2% early premarket on Wednesday, as investors gradually warmed to the quarterly numbers from the memory chipmaker after their initial tepid reaction.

Tech venture capitalist and Deepwater Asset Management Managing Partner Gene Munster said Micron’s fourth-quarter results for the fiscal year 2025 reinforced the fact that the artificial intelligence (AI) revolution is alive and kicking. He attributed the muted after-hours reaction to the positive earnings to Micron’s stock rally (+98%) this year and investors baking in a strong performance after the mid-August positive preannouncement. 

Munster also noted that Micron’s first-quarter revenue guidance of $12.50 billion, plus or minus $300 million, suggests 43% year-over-year (YoY) growth, slower than the fourth-quarter’s 46% increase.

The tech analyst clarified that the 43% YoY growth Micron guided comes against a tough comparison with the first quarter of 2024, when revenue climbed 80%. “This speaks ultimately to the AI train just keeps rolling,” he said, adding that MU’s results, particularly its guidance, are a further validation that we remain early.

Munster commended the company’s positive margin performance, which underscored the strength of the demand environment.

On Stocktwits, retail sentiment toward Micron stock rose to the highest this year (93/100) by early Wednesday, suggesting an ‘extreme bullish’ mood. 

The company’s forward price-earnings (P/E) multiple is 10.7 times, suggesting that the valuation is attractive, especially for a high-growth company with exposure to AI. According to hedge fund manager Ryan Lee, the stock remains undervalued.

Micron reported record revenue for the fourth quarter, with both top- and bottom-line results exceeding expectations and guidance above the consensus. Micron CEO Sanjay Mehrotra said the company remains uniquely positioned to capitalize on the opportunities presented by AI.

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