1. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 137
Year-To-Date Performance: 47.69%
Micron Technology, Inc. (NASDAQ:MU) is one of the must-buy US stocks to buy right now. On April 8, UBS analyst Timothy Arcuri raised his price target on Micron Technology, Inc. (NASDAQ:MU) from $510 to $535 while maintaining a Buy rating. The analyst cited mounting evidence of a durable memory pricing upcycle backed by long-term commitment from the industry’s biggest customers.
According to the analyst, UBS’s industry checks point to continued pricing strength in both DRAM and NAND. He noted that high-bandwidth memory, or HBM, is leading the charge, and that this is a trend the firm expects to push Micron’s margins meaningfully higher in the coming quarters.
Arcuri pointed out that the most outstanding aspect of UBS checks is the nature of the conversations happening between memory suppliers and their customers. He noted that hyperscalers and OEMs are actively pursuing long-term agreements with Micron, SK Hynix, and Samsung. These agreements include volume commitments, pre-payments, and clearly defined pricing ranges. This is a level of structural commitment rarely seen in what has historically been a volatile, spot-driven market, the analyst noted.
On HBM specifically, hyperscalers are pushing for longer contract terms, Arcuri said. He added that all three major memory producers are in alignment on one goal, which is rebuilding a pricing premium for HBM into calendar year 2027. This would extend margin gains well beyond the near term, he concluded.
Micron Technology, Inc. (NASDAQ:MU) is a semiconductor company that designs, manufactures, and sells memory and storage products. It produces DRAM, NAND flash memory, and solid-state drives used in data centers, personal computers, mobile devices, and automotive systems.
While we acknowledge the potential of MU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MU and that has 100x upside potential, check out our report about the cheapest AI stock.
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