Micron fundamentals starting to 'inflect' ahead of Q4 results, Wedbush says
hapabapa
Micron Technology (NASDAQ:MU) is slated to report fiscal fourth-quarter results after the close of trading on September 27 and the semiconductor company is starting to see an inflection point in its fundamentals as the memory market starts to recover. 
"While there are certainly still areas of weakness in the memory sector (particularly reduced hyperscale demand, but also soft enterprise requirements with handset and PC end markets hovering close to cyclical bottoms), we saw a few positive inflections over the course of Micron's quarter that should benefit outcomes at the margin, while setting up more favorable dynamics in FQ1'24," analyst Matt Bryson wrote in an investor note dated Thursday.
Delving deeper, Bryson added that artificial intelligence is buoying demand for dynamic random access memory, as requirements for DDR5 and high-bandwidth memory have "accelerated" over the period.
Bryson noted that while Micron has not yet produced HBM3 - with parts due in the middle of next year - the rise in price for DDR5 should benefit results.
Additionally, the analyst said that the Chinese handset market is starting to rebound a bit, particularly with new offerings from Huawei and Xiaomi, both of which have "created a better demand backdrop than might have been expected this past summer."
Lastly, Bryson said that spot pricing for NAND has improved due to the aforementioned issues, as well as Samsung's (OTCPK:SSNLF) decision to further reduce starts.
Bryson has an outperform rating and $80 price target on Micron (MU) shares.
A consensus of analysts expect Micron (MU) to lose $1.18 per share during the period, with revenue expected to come in at $3.91B.

More on Micron Technology

Micron: A Palpable Downturn
Micron Technology, Inc. Deutsche Bank's 2023 Technology Conference - (Transcript)
Micron: Why Big Money Buys/Holds At ~$63?
Micron rises as Deutsche Bank upgrades on 'inflecting fundamentals'
Micron rises as Barclays sees recovery shoots despite China ban