Micron Dominates High-Bandwidth Memory Market, Anticipates Significant Revenue Growth: Analyst
Portfolio Pulse from Anusuya Lahiri
Piper Sandler analyst Harsh V. Kumar reiterated an Overweight rating on Micron Technology, Inc (NASDAQ:MU) with a price target of $130, highlighting Micron's dominance in the high-bandwidth memory (HBM) market. Micron's HBM3E product is noted for its 30% greater power efficiency over competitors, leading to significant revenue visibility. The company has sold out its HBM capacity for 2024 and most of 2025, anticipating revenue growth from this segment. Micron's HBM market share is expected to align with its broader DRAM market share by 2025. Challenges in expanding HBM capacity are acknowledged, but Micron is committed to overcoming these hurdles. The next generation of HBM, HBM4, is expected to enter volume production around 2026. Micron stock has gained over 96% in the last 12 months. Investors can also gain exposure to Micron through REX FANG & Innovation Equity Premium Income ETF (NASDAQ:FEPI) and Invesco Semiconductors ETF (NYSE:PSI).
April 15, 2024 | 5:26 pm
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POSITIVE IMPACT
REX FANG & Innovation Equity Premium Income ETF (NASDAQ:FEPI) offers investors exposure to Micron Technology, Inc., which is experiencing significant growth and innovation in the high-bandwidth memory market.
Given Micron's positive outlook and its significant role in FEPI's portfolio, the ETF could see a positive impact from Micron's growth and market dominance in HBM. However, the impact may be diluted due to the diversified nature of ETF holdings.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Micron Technology, Inc. is poised for significant revenue growth due to its dominance in the high-bandwidth memory market, with its HBM3E product leading in power efficiency. The company has sold out its HBM capacity for 2024 and most of 2025, indicating strong demand and revenue visibility. Challenges in expanding HBM capacity are noted, but Micron is committed to innovation with plans for HBM4 volume production around 2026.
Micron's leadership in the HBM market and the sold-out capacity for the next two years indicate strong demand and potential for significant revenue growth. The commitment to overcoming expansion challenges and planning for the next generation of HBM underscores the company's strategic direction and innovation, likely positively impacting its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
POSITIVE IMPACT
Invesco Semiconductors ETF (NYSE:PSI) provides investors with exposure to Micron Technology, Inc., benefiting from Micron's leadership in the high-bandwidth memory market and anticipated revenue growth.
PSI's exposure to Micron positions it to benefit from Micron's anticipated revenue growth and market leadership in HBM. The impact on PSI may vary depending on the weight of Micron in the ETF and the performance of other holdings.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50