Micron Technology Enters Memory Super-Cycle Amid AI Demand Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 9h ago
0mins
Source: NASDAQ.COM
- Market Recovery: After nearly halving its revenue in fiscal 2023, Micron Technology is poised to enter a memory super-cycle by 2026, driven by the rapid buildout of AI infrastructure, indicating a strong market rebound potential.
- Surging Demand: The demand for high bandwidth memory (HBM) due to AI chip requirements has led to a supply shortage in the DRAM market, driving prices up, with expectations of a continued strong growth rate of 40% annually in the coming years.
- Financial Improvement: Micron's revenue and gross margins are rapidly increasing, leading the company to achieve net cash positive status, showcasing its strong profitability and cash flow position in the memory market.
- Increased Capital Expenditure: To meet the growing market demand, Micron has raised its capital expenditure budget for 2023 from $18 billion to $20 billion, aiming to enhance production capacity to address future market tightness.
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.
