Leading Mizuho expert Vijay Rakesh kept his Outperform score on Micron Innovation ( MU) with a $265 rate target after current talks with the business’s leading leaders. He stated Micron looks well positioned to acquire from strong need for AI memory chips and a tight supply of DRAM and NAND through the next 2 years.
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It deserves keeping in mind that Rakesh ranks 35 out of more than 10,000 experts tracked by TipRanks. He has a success rate of 66%, with a typical return per score of 30.50% over a 1 year timeframe.
AI Memory Need Stays Strong
Rakesh stated need for High Bandwidth Memory (HBM) need to remain strong into 2026 and 2027, assisted by increasing usage in AI servers. He thinks about 40% of Micron’s DRAM items might see greater sales and much better margins as costs enhance early next year.
Micron’s next HBM4 chips, constructed with its own style and advanced procedure tech, are increase well. The expert anticipates HBM sales to more than double year over year, offering Micron a bigger function in the fast-growing AI chip market.
MU Poised to Gain from Tight Supply and Strong SSD Need
The expert stated restricted capability in China might support memory costs over the next couple of years. Around 30– 35% of Samsung and Hynix’s memory output is dealing with hold-ups due to chipmaking guidelines, which might keep supply tight and assist Micron gain from firmer costs into 2027 and 2028.
He likewise kept in mind that Micron’s brand-new U.S. plants in Idaho and New york city, anticipated to begin production in between 2027 and 2029, might raise its U.S. DRAM share from mid-single digits to around 20% over the next years.
Rakesh included that need for solid-state drives (SSDs) is climbing up as AI servers require quicker storage. Micron’s QLC-based eSSDs are seeing higher adoption in AI systems that need high speed and capability. With hard disks still in brief supply, SSDs are getting more share in big information centers.
Rakesh thinks Micron is “well placed in the AI information center market,” with strong prices patterns and a strong roadmap for future items.
Is Micron a Good Stock to Purchase?
Micron stock has an agreement Strong Buy score amongst 29 Wall Street experts. That score is based upon 26 Buy and 3 Hold suggestions appointed in the last 3 months. The typical MU rate target of $218.70 suggests 8.08% disadvantage from existing levels.
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Source: Business Insider.
