Is Micron (MU) the Next Big Winner in AI Memory? Analysts Think So
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 AI Stocks Investors are Watching. On June 26, UBS raised the firm’s price target on the stock to $155 from $120 and kept a “Buy” rating on the shares. In a research note, the analyst told investors how Micron has delivered HBM revenue and gross margin that met or slightly exceeded investor expectations.
“MU delivered against the only real investor expectations we heard into the call – HBM [high bandwidth memory] revenue and gross margin, both of which were in-line to a little better than bogeys.”
A close up of a circuit board, its microchips creating a powerful computing system.
The company also boasts a strong financial position as demonstrated by its robust liquidity.
With HBM becoming an important part of the DRAM business, it represents 6-7% of DRAM bits. However, they take up around 19-20% of production space as per UBS estimates, which is why Micron focuses on selling these chips to higher-value markets.
UBS believes that the supply-constraint dynamics will stay until 2026, until Micron and its peers install new manufacturing capacity. The firm thinks this will be done “carefully and strategically” in order to maintain favorable market conditions.
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
While we acknowledge the potential of MU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
READ NEXT:10 AI Stocks in the Spotlightand 10 Trending AI Stocks on Wall Street Right Now.
Disclosure: None.
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