Image Source: Unsplash

Micron Technology (MU), a constituent in the MunAiMarkets Integrated Device Manufactures (IDM) Portfolio, has been on a tear over the past 6 weeks, up 22.8% in May (see details in a previous post here) and already UP 22.4% in the first 2 weeks of June. Here’s what’s powering the rally:

1. AI Memory Boom: Micron’s high-bandwidth memory (HBM) chips are in hot demand, especially for powering Nvidia’s Blackwell GPUs. HBM sales topped $1 billion in Q2, and expectations are high for even stronger Q3 results.
   • What Is High Bandwidth Memory? High Bandwidth Memory (HBM), in simple terms, is a certain number of conventional DRAM (direct random-access memory) chips stacked together to achieve greater performance and efficiency. HMB only recently came into its own with the advent of generative AI, which requires components that can handle massive amounts of data without lag time.
2. Analyst Upgrades: Citi and UBS both raised their price targets (to $130 and $120, respectively), citing better-than-expected DRAM pricing and Micron’s leadership in AI memory solutions which sent a strong signal to the market, prompting investors to view the chipmaker more favorably.
3. Heightened market optimism around artificial intelligence (AI): The AI boom has been fueling demand for cutting-edge memory and semiconductor technologies, areas where Micron is a major player and Micron’s latest product, HBM3E, meets these demanding requirements and is already being integrated into NVIDIA’s flagship AI systems. In short, Micron is riding the AI wave with the right products at the right time.

About Micron Technology

Micron Technology, Inc., with a little over 5% market share (SK Hynix, which trades on the Korea Stock Exchange has a market share of +52%,  and Samsung (SSNLF) has a 42.4% market share), designs, develops, manufactures, and sells memory and storage products. Specifically, it provides:

• memory and storage technologies comprising dynamic random access memory (DRAM) semiconductor devices with low latency that provide high-speed data retrieval;
• non-volatile and re-writeable semiconductor storage devices; and
• non-volatile re-writable semiconductor memory devices that provide fast read speeds.

Stock Price Forecast

The 26 analysts that cover Micron Technology stock have an average price target of $135.65, which represents a 17.34% increase in the stock price over the next year.

Analyst Ratings

The average analyst rating for Micron Technology stock is "Strong Buy" which means that analysts believe this stock is likely to perform very well in the near future and significantly outperform the market.

More By This Author:

Recursion Pharmaceuticals Went Down 10% Week-Ending June 13th - Here's Why
Update: Abcellera Biologics Now Up 58% MTD
Canopy Growth Fell 13% Last Week; Here's Why