10 AI Stocks on the Market’s Radar

6. Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 105

Micron Technology, Inc. (NASDAQ:MU) is one of the 10 AI Stocks on the Market’s Radar. On December 18, Rosenblatt raised its price target on the stock to $500 from $300 on Thursday, maintaining a Buy rating. The firm is strongly bullish on Micron as it views memory and storage demand accelerating in the AI era.

Micron’s November quarter results and February quarter guidance was well above consensus, Rosenblatt noted. The newly negotiated DRAM and NAND Flash prices combined with continued cost declines have been key factors driving performance.

This has led the management to guide February quarter Non-GAAP GM to a record high of 68%, with demand anticipated to outstrip supply into CY27. The outlook reflects Micron’s strengthening position in memory and storage markets.

Overall, the firm sees record gross margins and tight supply leading to long-term upside.

“We are moderating the revenue growth and gross margin expansion going into CY27 considering long-term agreements will likely control ASP increases. Despite this cautious view, we estimate $36 in FY27E earnings. Using the same 14x FY27 EPS, we move our 12-month price target to $500 (from $300). We continue recommending MU for the increasing importance of memory and storage in the Age of AI.”

Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.