1 Wall Street Analyst Predicts 21% Upside for Micron Technology Stock


1 Wall Street Analyst Predicts 21% Upside for Micron Technology Stock

One of the top suppliers of memory chips, Micron Technology, is riding the wave of Artificial Intelligence (AI) growth. The company’s stock has reached new highs this year, signaling a return to profitable growth. Citi analyst Christopher Danely believes that there is still room for the stock to rise after speaking with Micron’s management team. He maintains a buy rating on the stock with a price target of $150, representing a 21% increase from the current price of $123.58.

Micron is a key player in the supply of dynamic random access memory (DRAM) and solid-state storage for various devices including computers, smartphones, and data centers. While revenue from these products can be volatile due to market cycles, the company is starting to see a recovery that could result in significant revenue growth in the coming years. A recent earnings report highlighted strong demand from AI servers, tightening supply, and increasing selling prices for memory chips. This contributed to a 58% year-over-year revenue increase in the company’s fiscal second quarter of 2024.

Looking forward to fiscal 2026, Micron’s shares are trading at a relatively modest forward price-to-earnings ratio of 12. Despite operating in a cyclical industry, management expects a record year for revenue in fiscal 2025, which could drive the stock price even higher than the analyst’s target.

It is important to note that Citigroup is an advertising partner of The Ascent, a Motley Fool company, and John Ballard has no position in any of the mentioned stocks. The Motley Fool has no position in any of the mentioned stocks and adheres to a disclosure policy.

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