Micron Sees Increased Demand for HBM-Driven DRAM: Will AI Continue to Fuel Growth?
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Updated: 4 day ago0mins
Micron's DRAM Growth: Micron Technology is experiencing significant growth in its DRAM segment, with revenues increasing 68.7% year-over-year to $8.98 billion, driven by rising demand for high-bandwidth memory (HBM) due to expanding AI workloads.
Future Prospects: The company is preparing to transition to HBM4 and has secured pricing agreements for its HBM3E supply, indicating strong revenue growth visibility as demand from AI applications continues to rise.
Market Position and Competition: Micron's growth is supported by tight DRAM supply and limited industry capacity, while competitors like Intel and Broadcom are also expanding their AI memory chip offerings, enhancing the overall HBM supply chain.
Stock Performance and Valuation: Micron's shares have surged 184.6% year-to-date, and it trades at a forward price-to-earnings ratio of 13.01, significantly lower than the industry average, with strong earnings growth estimates for fiscal 2026 and 2027.
AVGO.O
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Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVGO is 398.73 USD with a low forecast of 300.00 USD and a high forecast of 480.00 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.
30 Analyst Rating
28 Buy
2 Hold
0 Sell
Strong Buy
Current: 381.030
Low
300.00
Averages
398.73
High
480.00
Current: 381.030
Low
300.00
Averages
398.73
High
480.00
Oppenheimer
Rick Schafer
Outperform
maintain
$400 -> $435
2025-12-05
New
Reason
Oppenheimer
Rick Schafer
Price Target
$400 -> $435
2025-12-05
New
maintain
Outperform
Reason
Oppenheimer analyst Rick Schafer raised the firm's price target on Broadcom to $435 from $400 and keeps an Outperform rating on the shares ahead of its Q4 earnings next week. The firm sees upside for results and outlook, led again by AI compute/networking franchises, the analyst tells investors in a research note. Oppenheimer adds that it expects next-gen Tomahawk6 volumes to ramp in the second half of next year, providing added growth and gross margin boost.
Susquehanna
Christopher Rolland
maintain
$400 -> $450
2025-12-04
New
Reason
Susquehanna
Christopher Rolland
Price Target
$400 -> $450
2025-12-04
New
maintain
Reason
Susquehanna analyst Christopher Rolland raised the firm's price target on Broadcom (AVGO) to $450 from $400 and keeps a Positive rating on the shares. The firm updated its model ahead of its quarterly results and believes the launch of new Google TPUv7 (GOOG) coupled with proliferating AI networking demand to drive growth in 3Q/4Q. And looking forward, broadening ASIC customer set to drive inflection in 2H26.
BofA
Neutral
maintain
$88 -> $105
2025-12-03
New
Reason
BofA
Price Target
$88 -> $105
2025-12-03
New
maintain
Neutral
Reason
BofA raised the firm's price target on Marvell (MRVL) to $105 from $88 and keeps a Neutral rating on the shares. The company had a "very confident tone" and sales visibility on the call, but the firm reiterates its Neutral rating based on three points: FY27 EPS is relatively unchanged given expected dilution from the planned Celestial AI acquisition; the 25%-plus year-over-year data center growth rate next year is strong, but below the 50%-100% growth rate for AI compute peers; and FY28 growth depends on ramp at new customer Microsoft (MSFT), who does not have a history of large internal ASIC programs and who already has choice of incumbent Nvidia (NVDA) and partner OpenAI-Broadcom (AVGO) design IP.
Goldman Sachs
James Schneider
Buy
maintain
$380 -> $435
2025-11-26
Reason
Goldman Sachs
James Schneider
Price Target
$380 -> $435
2025-11-26
maintain
Buy
Reason
Goldman Sachs analyst James Schneider raised the firm's price target on Broadcom to $435 from $380 and keeps a Buy rating on the shares. The firm expects focus on FY26 AI revenue guidance, the contributions from Google and OpenAI, and gross margins as custom XPU shipments scale, the analyst tells investors in a research note. Expectations are already high, and updated guidance is likely to exceed the prior forecast of 100% year over year AI revenue growth, with particular attention on the XPU vs. networking mix and OpenAI's FY26 impact.
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About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
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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.
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