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Investing.com - Stifel has issued a positive outlook for Micron Technology (NASDAQ:MU) in a new research note on the American Semiconductors, Processors, and Components sector. The company, currently generating $33.81B in revenue, has seen its stock surge nearly 57% year-to-date, trading close to its 52-week high of $132.26.
The research firm highlighted that hyperscaler forecasts are showing improvement across the semiconductor industry, signaling potential growth in the data center market.
Stifel specifically noted that the market "under-appreciates the significant change in composition of Micron’s datacenter revenue" which now represents the majority of the company’s sales.
The firm pointed out that Micron’s datacenter segment is achieving gross margins at or approaching 50%, a metric that appears to be overlooked by investors.
Stifel expressed an optimistic view on memory pricing through the end of the year, stating they are "more upbeat on memory pricing into yr-end."
In other recent news, Sandisk and other computer hardware and storage companies experienced significant gains following the introduction of new export regulations. Sandisk saw a 13% increase in its stock, while Western Digital, Seagate Technology, Micron, and Lam Research also posted gains. These developments are linked to the potential impact of the new export rules on memory chip production in China. Meanwhile, Micron Technology has been the subject of several analyst reports. Goldman Sachs reiterated its Neutral rating with a $130 price target, focusing on Micron’s high-bandwidth memory (HBM) production ramp. CLSA initiated coverage with an Outperform rating and a $155 price target, highlighting demand from artificial intelligence customers. Cantor Fitzgerald maintained an Overweight rating with a $155 price target, noting potential market share impacts from Samsung’s progress. Wolfe Research also reiterated an Outperform rating, setting a $160 price target based on future earnings projections for Micron.
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