Micron (MU) Draws Bullish Call as AI Memory Demand Reshapes Growth Outlook

Micron’s growth profile seems to be shifting as memory demand enters a new, more profitable phase. The stock is fifth on our list of 12 AI Stocks Wall Street Is Watching Now.

On May 11, D.A. Davidson reiterated the stock as “Buy” with a $1,000.00 price target. The firm believes Micron is a table-pounding buy.

Following up on our recent initiation after investor conversations, we have increased conviction around our BUY rating and $1,000 target. We are blissfully unencumbered by the memory industry’s past.

Micron (MU) Draws Bullish Call as AI Memory Demand Reshapes Growth Outlook

Source: Micron Technology

DA Davidson noted that there are many investors that still believe that Micron is still an old-style, highly cyclical business. However, artificial intelligence is changing this perspective. In fact, Micron’s business is becoming stronger owing to high-end HBM, the DRAM oligopoly, and longer-term contracts.

That said, investors are still underestimating “the new math of memory in the AI age,” and how much the new AI-driven memory cycle can benefit the stock.

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

While we acknowledge the risk and potential of MU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MU and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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