Micron Stock Price Target Raised at Citi, Baird; Shares Rise
Micron Technology's stock saw a boost as analysts from Citi and Baird increased their price targets for the AI memory chipmaker. This positive change comes just before Micron is set to announce its fiscal Q4 2024 results on June 26.
Why are the Targets Increased?
Citi rates Micron (MU) stock as a "Top Pick" and predicts that the company will report better-than-expected results. They highlight a few key reasons for this optimism:
- DRAM upturn: DRAM (dynamic random-access memory) prices are improving.
- AI memory exposure: Micron's involvement in AI technology is growing.
Citi has raised their price target for Micron from $150 to $175. They believe Micron should be valued higher than its historical average due to its strong position in AI memory.
What is DRAM and AI Memory?
To explain a bit:
- DRAM: A type of memory used in computers and other devices to store data temporarily.
- AI Memory: Special memory used in artificial intelligence tasks, which require fast data processing.
Revenue Projections
Citi analysts foresee that Micron will earn $700 million from its AI high-bandwidth memory (HBM) in 2024 and $3 billion in 2025.
Baird's Positive Outlook
At the same time, Baird has also raised their price goal for MU shares from $150 to $172. Baird analysts note:
- DRAM pricing remains strong: Prices for DRAM are holding steady and even increasing.
- High-bandwidth memory (HBM): They compare HBM to the early days of NAND flash (a type of memory in USB drives and SSDs), noting its significant potential for growth.
Baird expects continued memory pricing trends to increase this year, which is good news for Micron's business.
What to Look For
As Micron gets ready to announce their Q4 results on June 26, both Citi and Baird have expressed significant confidence in the company's future due to strong market trends and increased involvement in AI memory technology.
This summary should help you understand why Micron's stock is receiving a lot of positive attention. The company is doing well in the AI sector and prices for their memory products are rising, which is bringing a lot of optimistic projections from experts.
