Micron Technology's Stock Price Target Raised by 60% Due to AI Sector Growth
Micron Technology's Stock Price Target Raise
Despite initial concerns, Micron Technology's stock sees a significant increase in its price target, driven by strong growth in the AI sector. Citibank recently raised Micron's target price by 60% based on optimistic projections and shipments of high-margin products, such as High Bandwidth Memory accompanying Nvidia AI systems. The bank believes the valuation is warranted due to Micron's growing exposure to the AI sector, compared to other AI-exposed stocks like Broadcom and AMD that have seen multiples double.
Optimistic Projections and Analyst Confidence
Expectations are high for Micron, with projections of surpassing consensus estimates following robust DRAM pricing and shipments. Citibank has adjusted the earnings-per-share estimate for Micron and set the price target based on future EPS estimates. Analysts at Citibank, Wells Fargo, and Goldman Sachs have expressed optimism about Micron's future performance, leading to a bullish stance on the stock.
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