Why Micron Stock Hit A New 52-Week High

Micron Technology, Inc. MU shares are trading higher Monday after the company announced it has begun volume production of its High Bandwidth Memory 3E (HBM3E) solution. 

The Details:

Micron said its 24GB 8H HBM3E will be part of Nvidia Corporation‘s NVDA H200 Tensor Core GPUs, which will begin shipping in the second quarter of 2024. Micron added the HBM3E leads the industry with approximately 30% lower power consumption compared to competitive offerings. 

“Micron is delivering a trifecta with this HBM3E milestone: time-to-market leadership, best-in-class industry performance, and a differentiated power efficiency profile,” said Sumit Sadana, chief business officer at Micron Technology. 

“AI workloads are heavily reliant on memory bandwidth and capacity, and Micron is very well-positioned to support the significant AI growth ahead through our industry-leading HBM3E and HBM4 roadmap, as well as our full portfolio of DRAM and NAND solutions for AI applications,” Sadana said. 

Micron shares set a new 52-week high of $91.74 Monday and have gained more than 12% following Nvidia's blockbuster fourth-quarter earnings report last week. 

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MU Stock Forecast 2030

Predicting the future in stock prices over long periods of time is challenging. Wall Street analysts use complex models that take into account interest rates, economic growth, competitive advantages, management teams and historical profitability, among a host of other factors.

If, as an investor, you want to assume most of the major factors remain stable, you can use trend analysis as a helpful tool. Using a longer term trend line or historical performance of the stock, you can aim to forecast a stock's annual rate of return.

For Micron Technology, over the past 5 years, it's annualized stock performance is 16.19%, and if you assume that trend continues for another 5 years, you can expect a stock to trade at $192.05.

Using a trend line (see how to perform this function here), If you choose to use a trend line, connect your two points and look into the future to the point in time in which you're curious. Once you've identified that stock price, you may want to consider what type of conditions would need to exist for the stock to justify the share price – be it an outside influence or managerial decision making.

MU Price Action: According to Benzinga Pro, Micron Technology shares are up 4.53% at $89.90 at the time of publication.

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