Micron price target raised to $200 from $172 at Rosenblatt on AI demand

Investing.com - Rosenblatt raised its price target on Micron Technology (NASDAQ:MU) to $200 from $172 on Thursday, maintaining a Buy rating on the memory chipmaker as artificial intelligence applications drive strong demand for its DRAM products. According to InvestingPro data, Micron has demonstrated impressive momentum with a 42% price return over the past six months, while maintaining a relatively modest P/E ratio of 30.1x.

The firm cited Micron’s leading power efficiency as a key factor that helped the company deliver revenue, gross margin, operating margins, and profits well above Wall Street expectations in its latest quarterly results.

Rosenblatt expects this performance trend to continue, noting that with DRAM wafer capacity expansion more than 18 months away, the current cycle could drive Micron’s income model to all-time highs.

The investment firm continues to recommend Micron shares based on their "relatively low valuation" at 12 times forward price-to-earnings ratio, strong balance sheet, expanding margins, and earnings leverage.

Micron has positioned itself as a beneficiary of the ongoing AI boom, with data centers requiring increasingly large amounts of high-bandwidth memory to power artificial intelligence applications and training models.

In other recent news, Micron Technology reported strong earnings and revenue results, with its August quarter guidance projecting revenues of $10.7 billion, surpassing consensus estimates of $9.9 billion. Cantor Fitzgerald, Mizuho (NYSE:MFG), UBS, Wells Fargo (NYSE:WFC), and Wolfe Research all raised their price targets for Micron, citing strong performance in the High Bandwidth (NASDAQ:BAND) Memory (HBM) segment. Cantor Fitzgerald increased its price target to $155, while Mizuho and UBS set targets at $150 and $155, respectively. Wells Fargo raised its target to $170, highlighting Micron’s HBM revenue growth of 50% quarter-over-quarter. Wolfe Research set a price target of $160, noting expectations for a cyclical recovery in the semiconductor industry. Analysts noted that HBM is becoming a significant portion of Micron’s business, with the company expecting to capture a 20-25% market share by the second half of 2025. Micron’s planned U.S. investment has also increased to $200 billion, reflecting the company’s confidence in future growth. These developments indicate a positive outlook from analysts regarding Micron’s strategic positioning and growth potential in the memory chip market.

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