11:26 AM EST, 12/17/2024 (MT Newswires) -- Micron Technology's ( MU ) fiscal Q1 results will likely meet or exceed guidance because of strong pricing trends in September, combined with a favorable product mix shift to Double Data Rate 5, enterprise solid-state drives and high-bandwidth memory, Wedbush said Tuesday in a report.

Fiscal Q1 results are scheduled for Wednesday

The fiscal Q2 outlook is more challenging amid eroding dynamics in non-volatile flash memory and dynamic random-access memory markets caused by late and lower-than-expected contract pricing, client inventory reductions, hyperscalers pushing for price cuts and delays in Blackwell server deployments, Wedbush said.

"We believe some of this pressure could be offset by mix (shift to DDR5, eSSD, and HBM), meaning risk to our current fiscal Q2 forward estimates might be relatively modest," Wedbush said.

Normalizing inventory levels at client device original equipment manufacturers, increased Blackwell server shipments for cloud and AI applications and stronger hyperscale spending are expected to drive demand recovery through the back half of 2025, the report said.

Wedbush reiterated its outperform rating on Micron's stock and maintained the $140 price target.

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