CLSA Initiates Coverage on Micron Technology (MU) With an Outperform Rating

Micron Technology, Inc. (NASDAQ:MU) is one of the best affordable growth stocks to buy. In a new note released on August 27, CLSA analyst Sanjeev Rana initiated coverage on Micron Technology, Inc. (NASDAQ:MU) with an Outperform rating and a price target of $155.

Wolfe Research Stays Bullish on Micron (MU) as Rubin Ultra Boosts Memory Needs

The analyst told investors that he sees Micron Technology, Inc. (NASDAQ:MU) as a primary beneficiary of the growing AI spending, citing steady pricing in DRAM, solid demand for high-bandwidth memory (HBM), and signs of recovery in NAND.

For NAND, the analyst sees signs of recovery with rising demand for enterprise SSDs and a supplier hold-back on aggressive spending.

Rana also stated that Micron Technology, Inc.’s (NASDAQ:MU) pivot towards more customized, AI-focused memory products warrants a higher multiple, setting the company’s price target at 2.4x FY26 book value, a premium to its historical average.

Micron Technology, Inc. (NASDAQ:MU) provides innovative memory and storage solutions. Its operations are divided into the following segments: Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU).

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.

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