Memory is the new oil of the AI economy, and Micron Technology (NASDAQ:MU | MU Price Prediction) has become its biggest beneficiary.
Micron Technology (MU) remains undervalued despite explosive earnings growth and a pivotal role in the AI/data center supply chain. Consensus forecasts for MU show a sharp revenue and margin surge through YE27, yet the market still prices it as a cyclical commodity stock. I maintain a BUY rating, raising my YE26 price target to $903 and YE27 to $1,477, based on a reasonable 15x PE multiple.
Micron Technology's stock has increased by nearly 9x in the past year, raising its market valuation above $800 billion – marking one of the most substantial single-year increases in the company's forty-year trading history. This increase is fueled by heightened demand and a deficit of high-bandwidth memory, the specialized chips that complement AI accelerators within data centers.
Shares of Micron Technology (NASDAQ:MU | MU Price Prediction) are surging on Wednesday, trading at around $804 and up roughly 5% on the session.
The stock of Micron Technology has been on a stunning rally over the last year, with its share price surging by more than 720% during the period, but Bank of America says it sees more upside. BofA Securities lifted its price target on Micron (MU) stock to $950 from $500 while maintaining a Buy rating, reflecting growing optimism around long-term demand for high-performance memory chips used in AI servers and data centers.
Bank of America (BofA) raised its price target on Micron (NASDAQ: MU) from $500 to $950 on Wednesday, May 13, while reiterating a ‘Buy' rating, just as the stock surged 140% year-to-date.
Micron Technology, Inc. and Nvidia Corporation are poised to benefit from the Trump-Xi summit, which targets improved U.S.-China tech relations and supply chain security. The talks will focus on resolving supply chain bottlenecks, securing market access, and finding consensus on geopolitical divergences & AI, but the stakes for Micron & Nvidia couldn't be higher. Nvidia could see a $2-5B quarterly revenue boost if U.S.-China tensions ease, potentially lifting its valuations multiple from currently depressed levels.
Micron Technology (NASDAQ:MU | MU Price Prediction) trades at $766.58 with a market cap of $896.92 billion, putting the only U.S.
A walkout at Samsung could hit about 3% of global memory-chip production, according to estimates.
Artificial intelligence has a funny way of turning obscure hardware components into economic kingmakers.
Shares of SanDisk (NASDAQ:SNDK | SNDK Price Prediction) are down 9% to around $1,405 in Tuesday midday trading.
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