15 AI Stocks Analysts Are Watching: Microsoft, Nvidia, and More

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

Number of Hedge Fund Holders: 154

With memory markets continuing to improve over the past three months, Wall Street is becoming more bullish on Micron Technology. On June 22, Needham analyst N. Quinn Bolton raised the price target on the stock to $1,550.00 (from $500.00) while maintaining a Buy rating.

Ahead of Micron’s earnings report on 6/24, we are meaningfully raising our estimates and increasing our 12-month PT to $1,550.

Needham has highlighted how the memory market has been strengthening over the past 90 days and market fundamentals continue to demonstrate robustness. This strength has been a result of robust demand, strong pricing environment, and also limited capacity additions.

To top off these favorable conditions, the firm noted how long-term agreements being signed are offering suppliers such as Micron with better demand visibility extending over multiple years. This, in turn, reduces uncertainty around future sales which is important considering how large technology companies continue to invest heavily in AI data centers.

Reflecting this multi-year visibility, together with the strategic importance of memory in AI, we believe investors should be comfortable paying a higher valuation multiple for memory stocks.

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

Click to continue reading and see the 5 AI Stocks Analysts Are Watching: Microsoft, Nvidia, and More.

Disclosure: None. Follow Insider Monkey on Google News.