Cantor Fitzgerald reiterates Micron stock rating on supply outlook

Cantor Fitzgerald has maintained its Overweight rating and set a $2,000 price target on Micron Technology stock (NASDAQ:MU), highlighting supply constraints and financial health. The stock has risen 486% over the past year to $1,065, with the firm noting the shares trade at 5.6 times and 4.5 times estimates. Management forecasts supply shortages for memory and storage through 2028, with 75% of 2027 production already committed and 50% through 2030.

Gross margins are expected to drop to 86.25% in the first quarter of fiscal 2027 before improving throughout the year. Capital expenditures are projected at $25 billion for the first half of fiscal 2027, rising to $55 billion or more in fiscal 2027. Micron is set to initiate aggressive share buybacks beginning December 9, pending the CHIPS Act.

With a strong quarterly performance, solid sequential growth, and increased average selling prices, Micron's financial health remains excellent, as confirmed by its EXCELLENT financial score. Analysts continue to express positive outlooks, citing robust demand and supply limitations.