Micron's Stock Soars As Analysts Forecast Strong AI And DRAM-Driven Earnings

Micron Technology, Inc MU shares are trading higher after Citigroup and TD Cowen analysts raised their price targets on the stock.

Citigroup analyst Christopher Danely reiterated Micron Technology with a Buy and raised the price target from $95 to $150.

Micron is scheduled to report its second-quarter fiscal 2024 results on March 20. 

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

The analyst expects the company to post an upside to Consensus and increased guidance for the third quarter, given strong DRAM pricing and shipments of higher-priced, higher-margin, High Bandwidth Memory (HBM), which is shipping with Nvidia Corp NVDA AI systems. 

Danely raised his fiscal 2025 EPS estimate on Micron from $6.38 to $6.65 and boosted his price target from $95 to $150, or 15X his 2026 EPS estimate of $10.03. This is a 50% premium to Micron’s historic range.

Still, he noted Micron stock should get a premium given increasing AI exposure, and other AI-exposed stocks such as Broadcom Inc AVGO and Advanced Micro Devices, Inc AMD have seen a 100% increase in their multiples. Micron remains his top pick and Buy-rated.

TD Cowen analyst Krish Sankar maintained Micron Technology with an Outperform and raised the price target from $100 to $120.

Investors can gain exposure to Micron via REX FANG & Innovation Equity Premium Income ETF FEPI and Invesco Semiconductors ETF PSI.

Also Read: Micron Tech Poised for Strong Earnings Amid Surge in Chip Pricing: Analyst

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

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