Micron Technology Poised for Growth On Strong AI Demand As Industry Enters The Most Significant Memory Cycle: Analyst
Rosenblatt analyst Hans Mosesmann reinstated Micron Technology Inc (NASDAQ:MU) with a Buy and a $140 price target.
The analyst expects Micron to deliver a beat and increase on Wednesday, March 20, on AI-driven segment demand, a bottoming in the broader markets (recovery in the second half of calendar year 2024) amid the industry’s disciplined supply memory posture.
As the industry enters the most significant memory cycle, the setup is a narrative that will be fed this week at Nvidia Corp’s (NASDAQ:NVDA) GPU Technology Conference (GTC), given that AI compute platforms cannot scale without DRAM content and high-performance HBM, he said.
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One of the more critical Micron-specific themes to watch is the company’s design momentum in HBM3E on performance and efficiency specifications unmatched by competitors, which he noted leading to double-digit market share.
Interestingly, Mosesmann noted the company’s HBM3E is capturing “sockets” exclusive to this round of new accelerator product ramps.
Micron remains the analyst’s top cyclical pick in the current memory cycle, which he noted will be one of the biggest in history, consistent with his Mother of All Cycles (MOAC) secular view.