Don’t sleep on Micron technology this week. The semiconductor maker is scheduled to report fiscal second-quarter results later Wednesday. The report comes at a time when sentiment around artificial intelligence is still high. Shares of Nvidia extended their 2024 rally on Monday as the company kicked off its GTC conference. Other AI plays like Alphabet and Super Microcomputer were also high. Analysts expect the report to serve as a stepping stone to stronger earnings going forward, driven by increased shipments of the company’s high-bandwidth Memory 3E memory chip to Nvidia, which is expected to be powered by AI technology. will be used together. Micron touts HBM3E as an essential component for moving the needle on AI development, and so far, analysts agree. “Micron is our largest cyclical pick in the current memory cycle, which we believe will be the largest in history, our Mother of All Cycles (MOAC),” Rosenblatt analyst Hans Moseman said Monday. ) is consistent with the secular perspective.” Mosesmann’s Buy rating and $140 per share price target represent a 50% upside from Friday’s close. MU YTD Mountain Micron Technology Stock. “A beat and rise is widely expected and HBM remains the focus,” TD Cowen analyst Krish Sankar said in a March 14 note. “Our fieldwork is encouraging on MU’s market share in HBM3E estimated to increase from 10-15% this year to 25%+ next year.” The analyst maintains an outperform rating on Micron stock as well as a price target of $120 per share, which equates to roughly 29% upside. Shares of Micron are up 12 percent this year. While that’s better than the S&P 500’s 8% gain, it’s well below Nvidia’s 82% gain. However, this performance gap could signal a buying opportunity in Micron’s report. “The guide/commentary should help increase confidence in the EPS. [earnings per share] $10+ strength, which undervalues the stock,” Sokohana analyst Mehdi Hosseini said on Monday. The firm maintains a buy rating on Micron and a price target of $112 per share. is, up 20% from the previous close. Citi’s Christopher Danley is even higher. More optimistic ahead of Micron’s results. Analysts raised its price target to $150 from $95, a roughly 61% gain. The upside was called for. The new price target is “a 50% premium to Micron’s historical range, but we think MU stock should yield. Premium and other AI-exposed stocks such as AVGO and AMD have seen their multiples rise 100% due to increased exposure to AI,” he wrote on Friday. “We expect the company to outperform consensus. will increase and increase strong DRAM guidance for F3Q24. [dynamic random access memory] The pricing and delivery of the high-cost, high-margin, high-bandwidth memory (HBM) that Nvidia is shipping with AI systems,” Danieli added.
