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.
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.
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