Micron's High-Bandwidth Memory Spells Profit Potential, Says Analyst Who Projects 18%-20% Upside For Tech Stock

KeyBanc Capital Markets analyst John Vinh shares bullish sentiments on Micron Technology Inc. MU, upgrading the stock to Overweight and raising the price target to $150.

Vinh’s optimism stems from Micron’s exceptional performance in HBM3E (High Bandwidth Memory), a critical component in the semiconductor industry.

According to Vinh’s analysis, Micron’s HBM3E showcases remarkable thermal and power efficiency compared to competitors SK Hynix and Samsung.

Feedback from Asia indicates that Micron’s HBM3E in qualification testing surpasses the performance of major providers, particularly in its 30% lower power consumption compared to SK Hynix, the analyst says.

While Samsung faces delays in HBM3E qualification, its performance lags significantly behind Micron and SK Hynix.

Vinh predicts Micron’s dominance in the HBM market as it gears up for the ramp of B100/B200. With ample HBM capacity, Micron is expected to exceed revenue outlooks and potentially generate over $1 billion in HBM revenues in CY24. This positive outlook signals Micron’s strong position in the memory industry, positioning the company as a key player in the semiconductor sector.

Vinh’s price target implies an upside of 20% from current price levels.

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Analysts See 18-20% Upside For Micron Stock

Recent analyst ratings on Micron stock, released from Keybanc, Citigroup, and B of A Securities on April 8, April 4, and April 1, respectively. With an average price target of $148 between Keybanc, Citigroup, and B of A Securities, there’s an implied 18.48% upside for the stock.

Let’s look at what the technicals suggest.

Technicals Validate Bullish Momentum

Chart: Benzinga Pro

Micron stock is trading above its 5-day, 20-day and 50-day exponential moving averages (EMAs) signaling a bullish setup. The Moving Average Convergence/Divergence (MACD) is at 8.96, adding strength to the bullish momentum.

Buying volume is also on an uptick, solidifying the bullish premise. However, the Relative Strength Index (RSI) at 72.32 is in the overbought territory, signalling caution.

Overall, the price chart analysis for Micron stock indicates that the market sentiment over the stock is bullish.

MU Price Action: Micron stock was trading at $125 at the time of publication.

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