Micron Technology Benefits from AI Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5h ago
0mins
Source: Fool
- Stock Surge: Micron Technology's shares have surged by 254% over the past 12 months, capturing Wall Street's attention and highlighting its potential and investment appeal in the AI hardware market.
- Revenue Growth: In the fiscal first quarter ending in December, Micron's total sales rose by 57% year-over-year to $13.6 billion, primarily driven by strong performance in its cloud services division, indicating that demand from AI data centers is boosting the company's performance.
- Market Outlook: The total addressable market for Micron's high-bandwidth memory devices is projected to reach $100 billion by 2028, growing at a 40% compound annual growth rate, providing robust support for the company's future growth.
- Share Buyback Plan: Micron repurchased $300 million worth of shares in the fiscal first quarter, and this figure is expected to increase over time as cash flow improves, thereby enhancing earnings per share and shareholder value.
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: 399.650
Low
235.00
Averages
336.12
High
500.00
Current: 399.650
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.
