Deutsche Bank Initiates Coverage of Micron Technology (MU) stock with Buy Rating

Micron Technology, Inc. (NASDAQ:MU) is one of the 10 Best Semiconductor Stocks to Buy According to Reddit. Deutsche Bank initiated coverage of the company’s stock with a “Buy” rating and a price objective of $150. The analysts remain optimistic on the cyclical and secular backdrop for Micron Technology, Inc. (NASDAQ:MU), driven mainly by increased demand for High Bandwidth Memory (HBM). Deutsche Bank opines that HBM remains an underrated driver of Gen/Gen AI processor performance improvements and expects that growth in HBM bits and ASPs can fuel DRAM revenue growth as well as profitability above historical levels.

Deutsche Bank Initiates Coverage of Micron Technology (MU) stock with Buy Rating

A close-up view of a computer motherboard with integrated semiconductor chips.

On the traditional DRAM side, the bank’s analysts expect continued strength aided by increased content per device and improvement in supply-demand dynamics. Micron Technology, Inc. (NASDAQ:MU) delivered record revenue in Q3 2025, thanks to the all-time-high DRAM revenue, including ~50% sequential growth in HBM revenue. Furthermore, the data center revenue more than doubled YoY in Q3 2025 and touched a quarterly record. Moving forward, Micron Technology, Inc. (NASDAQ:MU) expects to deliver revenue (GAAP) of $10.7 billion (± $300 million), and gross margin of 41.0% (± 1.0%) in Q4 2025.

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.