'Micron Now Has A Seat At The Table' For Generative AI, Says Analyst Who Believes Street Estimates Are 'Well Wrong And Too Low'
Portfolio Pulse from Adam Eckert
Stifel analyst Brian Chin upgraded Micron Technology Inc (NASDAQ:MU) from a Hold to a Buy rating and increased the price target from $80 to $120. Chin anticipates Micron to outperform Street estimates by 2025 due to a recovery in DRAM supply, improved gross margins, and increased demand from generative AI. Despite current consensus estimates predicting a loss, Chin expects Micron's DRAM business to drive significant revenue and profitability growth, particularly by 2025, due to tight DRAM supply and increased AI demand.
March 07, 2024 | 5:59 pm
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POSITIVE IMPACT
Micron Technology Inc upgraded to Buy by Stifel with a price target of $120, driven by optimistic DRAM supply recovery and generative AI demand forecasts.
The upgrade by Stifel reflects a significant positive outlook on Micron's future, particularly in relation to the DRAM market and the emerging demand from generative AI technologies. The raised price target to $120 from $80 indicates a strong belief in Micron's potential to outperform current market expectations, especially by 2025. This optimism is based on anticipated improvements in DRAM supply, gross margins, and the strategic positioning of Micron in the generative AI market. Such a bullish stance from a reputable analyst is likely to influence investor sentiment positively in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100