1 Wall Street Analyst Sees 21% Upside Potential for Micron Technology Stock

1 Wall Street Analyst Sees 21% Upside Potential for Micron Technology Stock

Shares of Micron Technology have seen a significant increase in value over the past year, with a 74% increase in the last 12 months. Despite this strong performance, analyst Brian Chin from Stifel recently upgraded the stock to a buy rating and raised the price target to $120, which represents a 21% upside from the current share price of $99.

One reason for the bullish outlook on Micron is the increasing demand for high-bandwidth memory in data centers to support artificial intelligence (AI) requirements. This trend has been reflected in Micron’s recent financial results, with a 17% revenue growth in the November-ending quarter. Management expects these positive results to continue throughout the year.

Micron’s business is subject to cyclical swings due to the fluctuating prices of memory and storage chips in a competitive market. However, recent reductions in supply have allowed Micron to report growing revenue, with expectations for improved margins throughout fiscal 2024. Despite the cyclical nature of its business, Micron currently trades at an inexpensive forward price-to-earnings ratio of 6.7.

Overall, the growing demand for AI is expected to continue fueling Micron’s revenue growth for the next few years. This trend, along with the increasing data center spending, could serve as catalysts for the stock to reach new highs through 2025. Investors may want to consider these factors when evaluating Micron as a potential investment opportunity.

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