Micron Technology's (MU) deviations from fiscal Q2 and Q3 guidance are likely to be modest, and conditions are likely to improve in H2 even with US tariffs adding some incremental risk, Wedbush said in a Monday note.

Ahead of the company's fiscal Q2 results on Thursday, Wedbush analysts said that softer pricing could push its margins into the lower half of the range, but a pickup in client device secondary market-related demand through February could yield "somewhat better bit shipments."

Beyond the company's fiscal Q3, the analysts said a number of favorable trends could bolster Micron's results. These include memory inventories at a number of client device original equipment manufacturers that are normalizing, which should lead to memory demand more closely paralleling end market fundamentals, they said.

Strong demand should benefit the company's high bandwidth memory results, and a normalization of server shipments to cloud and AI customers should increase high-capacity enterprise solid state drive demand, they said.

Wedbush reiterated the company's stock rating at outperform and maintained the price target at $125.

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