Morgan Stanley Semiconductors Weekly: Week 8 Earnings Preview Featuring Micron and CBRS
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Morgan Stanley's latest weekly semiconductor report focuses on the upcoming Week 8 earnings season, providing a detailed preview of Micron Technology and Citizens Broadband Radio Service related equities. The bank expects Micron to benefit from robust demand for High Bandwidth Memory and DDR5 technologies, although pricing pressures in conventional DRAM and NAND products continue to present headwinds.
For Micron's fiscal second quarter ending in February, the bank forecasts an approximate 8% sequential revenue increase, aligning with market consensus. While HBM3E shipment volumes are expected to double sequentially, overall gross margins may be constrained by legacy products, landing around 28%. Conventional DRAM prices in the PC and mobile sectors are projected to decline sequentially by 3% to 5%, with NAND prices falling 5% to 7%.
Regarding the CBRS Auction 108 scheduled for March, Morgan Stanley estimates total proceeds of roughly $500 million. Small carriers and fixed wireless access providers are anticipated to be the primary bidders, which could generate incremental leasing opportunities for communications infrastructure firms. The firm maintains an Overweight rating on Micron with a target price of $150, citing strong HBM and DDR5 demand. Crown Castle and American Tower also retain Overweight ratings, supported by potential benefits from CBRS spectrum activity and FWA deployments. Industry inventory levels are normalizing, though a full recovery in end-market demand remains uneven.
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