Micron Technology Poised for Growth On Strong AI Demand As Industry Enters The Most Significant Memory Cycle: Analyst

Rosenblatt analyst Hans Mosesmann reiterated Micron Technology Inc MU with a Buy and a $140 price target.

The analyst expects Micron to deliver a beat and raise on Wednesday, March 20, on AI-driven segment demand, a bottoming in the broader markets (recovery in the second half of calendar year 2024) amid the industry’s disciplined supply memory posture.

As the industry enters the most significant memory cycle, the setup is a narrative that will be fed this week at Nvidia Corp’s NVDA GPU Technology Conference (GTC), given that AI compute platforms cannot scale without DRAM content and high-performance HBM, he said.

Also Read: Samsung Takes Steps To Revamp Chip Manufacturing To Align With Nvidia’s AI Requirements: Report (UPDATED)

One of the more critical Micron-specific themes to watch is the company’s design momentum in HBM3E on performance and efficiency specifications unmatched by competitors, which he noted leading to double-digit market share. 

Interestingly, Mosesmann noted the company’s HBM3E is capturing “sockets” exclusive to this round of new accelerator product ramps.

Micron remains the analyst’s top cyclical pick in the current memory cycle, which he noted will be one of the biggest in history, consistent with his Mother of All Cycles (MOAC) secular view.

Cantor Fitzgerald analyst C J Muse maintained Micron with an Overweight and raised the price target from $100 to $120.

Barclays analyst Tom O’Malley maintained Micron with an Overweight and raised the price target from $95 to $120.

The stock gained 65% last year. Analysts can gain exposure to the stock via REX FANG & Innovation Equity Premium Income ETF FEPI and Invesco Semiconductors ETF PSI.

Price Action: MU shares traded higher by 2.32% at $93.55 on the last check Monday.

Also Read: Micron Analysts Forecast Strong AI And DRAM-Driven Earnings

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