After Gaining 800% in 1 Year, Wall Street Just Upgraded Micron to "Strong Buy" -- Unanimously. Here's Why.

It's just to accidental that investors were skeptical heading into Micron's (NASDAQ: MU) latest net report. The banal had already gained much than 700% implicit the erstwhile year, and had posted respective blowout net reports successful a row. In fact, connected the time of Micron's latest net report, the banal was down importantly during the trading time earlier the day announcement.

However, it's just to accidental that Micron knocked it retired of the park. Again. The banal soared to a caller all-time high, and adjacent aft a little pullback, it present has a marketplace capitalization of astir $1.3 trillion. This is from a representation institution that was mostly considered a boring, commoditized concern conscionable a mates of years ago.

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Even with the unthinkable performance, Micron could inactive person plentifulness of upside ahead. In fact, astir analysts who travel the banal deliberation that's precisely what volition happen. Here's a rundown of wherever Micron's concern stands today, and wherever Wall Street sees it heading successful the future.

Micron's latest net were stellar

It's hard to overstate however beardown Micron's latest numbers are. In its fiscal 3rd quarter, the representation elephantine reported $41.46 cardinal successful revenue, astir 350% much than the aforesaid 4th past year, and up a stunning 74% sequentially. On the bottommost line, the institution reported $25.11 successful net per stock -- astir $5 much than analysts had expected. As you astir apt expect, information halfway gross has been the cardinal driver, and is present astatine a tally complaint of much than $100 cardinal annualized.

Micron isn't done yet.

In the existent quarter, Micron is expecting $50 cardinal successful gross and $31 successful EPS, representing sequential maturation of 21% and 23%, respectively.

Perhaps astir significantly, Micron announced that it is pivoting to strategical lawsuit agreements (SCAs), which fundamentally perpetrate customers to billions successful aboriginal purchases. The institution reported 16 of these on with its results, astir of which person five-year presumption moving done the 2030 calendar year. The institution reported currency deposits and related commitments of $22 cardinal from this archetypal question of agreements, and 14 of the 16 agreements person a cumulative gross imaginable of astir $100 cardinal implicit their five-year terms.

This displacement provides a win-win situation: proviso visibility for Micron's customers, and much-needed gross visibility beyond the adjacent fewer years for Micron arsenic it spends aggressively to summation capacity.