Surge in AI Data Center Spending Drives Memory Chip Prices Higher
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7h ago
0mins
Source: Benzinga
- Memory Chip Shortage: The surge in AI infrastructure investment has led to a memory chip shortage expected to last until 2027, significantly reducing the supply available for consumer electronics like smartphones and PCs.
- Price Increase Pressure: Rising memory prices are forcing electronics manufacturers to consider price hikes, with Lenovo's CFO noting that demand continues to exceed supply, intensifying cost pressures across the industry.
- Market Leaders' Moves: Samsung is accelerating its production of next-generation AI memory, planning to start HBM4 chip manufacturing next month to meet Nvidia's needs, aiming to close the gap with SK Hynix.
- Capacity Expansion Challenges: While leading memory producers like Samsung and SK Hynix are working to expand production, the timeline for new capacity to come online is at least two years, limiting short-term relief from supply constraints.
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.
