An AI stock is attracting fresh attention from Wall Street as banking giants reassess its role in the artificial-intelligence supply chain.
Citi, JPMorgan Chase, Wells Fargo, and Rosenblatt Securities have all raised their price targets on Micron Technology (MU).
Micron Technology is a longtime leader in computer memory and storage and has now emerged as a key player in the AI industry. The company is focusing on high-performance products such as high bandwidth memory (HBM), which are critical for powering AI accelerators and data centers.
In a research note, Citi reiterates its buy rating on MU and lifted its price target to $175 from $150 “due to DRAM market upturn and the company’s AI exposure.”
Citi analysts also say the supply squeeze in the memory market bodes well for MU.
“We believe the continued memory upturn is being driven by limited production and better-than-expected demand, particularly from the data center end market.”
JPMorgan Chase is also bullish on MU, raising its price target from $165 to $185 amid strong demand trends for HBM and explosive AI capital expenditure in the coming months. Wells Fargo is also looking at robust demand for HBM, boosting MU’s price target from $150 to $170.
And Rosenblatt Securities lifted its price target for Micron from $172 to $200.
Says the firm’s senior research analyst, Kevin Cassidy,
“The combination of AI applications driving DRAM demand and Micron’s leading power efficiency drove revenue, gross margin, operating margins, and profits well above Street expectations.
Outlook is for more of the same. With DRAM wafer capacity expansion over 18 months away, we see this cycle driving Micron’s income model to all-time highs. We continue recommending MU shares for the relatively low valuation, 12x fP/E, strong balance sheet, expanding margins, and earnings leverage.”
On Friday, MU soared to a fresh all-time high at $158 before closing the week at $157.
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