Durable Growth Outlook for Chip Equipment
Written by Emily J. Thompson, Senior Investment Analyst
Source: CNBC
- Storage Stock Warning: Jim Cramer cautioned investors against chasing the rally in data storage stocks, particularly Micron, Western Digital, Seagate, and Sandisk, which saw their prices triple last year, indicating significant pricing power and market risk.
- Equipment Manufacturer Opportunity: Cramer recommended that investors consider semiconductor capital equipment makers like ASML and Applied Materials, as companies tend to increase equipment purchases during chip shortages to boost production capacity, leading to more stable investment returns.
- Industry Growth Metrics: ASML's stock rose 54% last year, Applied Materials gained 58%, while KLA and Lam Research surged 93% and 137%, respectively, reflecting strong demand and investor confidence in the semiconductor equipment market.
- Earnings Expectations and Strategy: Cramer expects these companies to report solid earnings, but due to significant stock price increases, he advised investors to consider buying after quarterly earnings reports if prices dip, aiming for long-term investment gains.
Analyst Views on MU
Wall Street analysts forecast MU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MU is 336.12 USD with a low forecast of 235.00 USD and a high forecast of 500.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 389.090
Low
235.00
Averages
336.12
High
500.00
Current: 389.090
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU). CNBU segment includes memory products and solutions sold into the data center, PC, graphics, and networking markets. MBU segment includes memory and storage products sold into the smartphone and other mobile-device markets. EBU segment includes memory and storage products and solutions sold into the intelligent edge through the automotive, industrial, and consumer embedded markets. SBU segment includes SSDs and component-level storage solutions sold into the data center, PC, and consumer markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
