Citi Keeps Buy, $150 Target on Micron (MU) as AI Tailwinds Build

Micron Technology Inc. (NASDAQ:MU) is one of the best data center stocks to buy now. Micron’s stock has surged 47% since the start of the year, and the momentum doesn’t look like it’s stopping any time soon. Supporting this view, Citi analyst Christopher Danely reiterated his Buy rating on August 20 and maintained a price target of $150, reflecting further upside of nearly 30%.

Danely’s view is based on improving profitability trends, particularly in gross margins, which he expects to reach new highs as product mix shifts toward high-bandwidth memory (HBM) and DRAM pricing benefits from accelerating AI demand.

Citi Keeps Buy, $150 Target on Micron (MU) as AI Tailwinds Build

A technician in a server room of a corporate office surrounded by servers and networking equipment.

The analyst also pointed to rising NAND demand, especially from data center customers, as another key driver of revenue growth. HBM sales have already shown strong quarter-over-quarter momentum, and he expects this to continue, putting the company on track toward a 50% gross margin target. While competition from Samsung in HBM remains a risk, Danely maintains confidence in Micron Technology Inc.’s (NASDAQ:MU) positioning, with his Buy rating.

Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and markets memory and storage products, including dynamic random-access memory (DRAM), flash memory (NAND), solid-state drives (SSDs), and High Bandwidth Memory (HBM) globally.

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 this cheapest AI stock.

READ NEXT: 10 Best Large Cap Tech Stocks to Buy Now and 10 Best Big Tech Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.