08:47 AM EDT, 09/26/2024 (MT Newswires) -- Micron Technology's ( MU ) enterprise oriented parts are seeing "robust" demand and pricing dynamics, boosting confidence that the chipmaker will report revenue and margin gains in fiscal Q1, Wedbush Securities analysts said in a note on Thursday.

The company's management has hinted that demand for high-bandwidth memory, an enterprise-oriented component, will now be equal to $25 billion next year, up from $5 billion this year, analysts Matt Bryson and Antoine Legault wrote.

"Assuming Micron's gauge of real end demand is accurate, we see limited likelihood of industry oversupply," the analysts wrote.

Wedbush also said that if high-bandwidth memory demand remains strong, the sector is unlikely to experience cyclical oversupply.

Micron still expects low single-digit PCs and gaming growth this year, with a "refresh" phase beginning at the end of the year and lasting until the second half of next year, Wedbush said.

The analysts expect Micron to report fiscal Q1 earnings of $1.74 per share on revenue of $8.72 billion.

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

Shares of the company were up 17% in recent Thursday premarket activity.

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