Micron Know-how (NASDAQ: ) shares rose forward of Monday’s open after analysts at Baird and Citi every raised their value targets on the maker of synthetic intelligence reminiscence chips.
These measures had been made earlier than Micron Know-how introduced its fourth fiscal quarter 2024 outcomes on June 26.
Citi charges MU inventory as a high decide, anticipating the corporate to report better-than-expected outcomes and steerage “given the turnaround in DRAM and Micron’s rising AI reminiscence enterprise.”
“We raised our estimate and value goal to $175 from $150, arguing that Micron Know-how shares ought to proceed to commerce above its historic vary given the dangers of synthetic intelligence,” the analysts added.
The Wall Road big expects Micron’s AI high-bandwidth reminiscence (HBM) income to succeed in $700 million in 2024 and $3 billion in 2025.
In the meantime, analysts at Baird raised their value goal on MU inventory to $172 from $150, saying they “proceed to see significant upside alternatives” as DRAM pricing stays sturdy.
“HBM is paying homage to early NAND flash reminiscence, with comparable bit CAGR and better gross margin potential. Reminiscence pricing tendencies stay sturdy within the close to future, and costs are anticipated to proceed to rise all year long,” the funding stated the corporate wrote.
