Key insights
- Melius Research initiated coverage on Micron with a buy rating and a $700 price target, citing the durability of the AI memory cycle. Lynx Equity raised its price target to $825. Micron is lobbying for export restrictions on Chinese chipmakers. Strong revenue growth and gross profit margins support the bullish outlook, suggesting positive momentum for Micron and the semiconductor sector.
Investing.com - Melius Research initiated coverage on Micron Technology (NASDAQ:MU) with a buy rating and a price target of $700, according to a note published Monday. The stock currently trades at $520.55, having surged 524% over the past year, according to InvestingPro data.
Analyst Ben Reitzes set the two-year price target, which represents 41% upside from current levels. Melius also initiated coverage on Sandisk with a buy rating and a $1,350 price target, representing 36% upside.
The firm said memory is core to its AI coverage, fitting with AI semiconductors, AI hardware and hyperscalers. Melius launched its AI-centric coverage in 2023, betting that semiconductors and hardware could re-rate as AI develops.
Reitzes said the AI memory cycle could continue through the end of the decade. The firm expects the market will eventually pay more for the durability of margin and demand profiles that AI enables.The bullish outlook aligns with Micron’s strong fundamentals. The company posted 85.6% revenue growth in the last twelve months, reaching $58.1 billion, while maintaining a gross profit margin of 58.4%. InvestingPro analysis indicates the stock remains undervalued relative to its Fair Value, with an "EXCELLENT" financial health score. For deeper insights, investors can access Micron’s comprehensive Pro Research Report, one of 1,400+ available for US equities.
The analyst cited unusual durability across HBM, DRAM, and NAND markets as AI adoption continues.
In other recent news, Micron Technology is actively lobbying the U.S. Congress to implement new export restrictions on equipment used by Chinese chipmakers. This effort is part of the "MATCH Act," which aims to tighten existing gaps in export controls and align foreign companies with U.S. restrictions. Meanwhile, Lynx Equity has raised its price target for Micron to $825, up from $700, due to extended capacity sell-outs and improved revenue visibility. The firm notes that Micron’s HBM and DDR5/lpDDR5 capacities are reportedly sold out through 2027.
UBS also adjusted its price target for Micron, increasing it to $535 from $510 and maintaining a Buy rating. This change reflects strengthening pricing in DRAM and NAND memory, particularly high-bandwidth memory, which is expected to enhance margins. KeyBanc continues to support Micron with an Overweight rating and a $600 price target, highlighting improved long-term supply agreements with hyperscale customers. These agreements include pricing floors and upfront payments, aiming to mitigate previous agreement shortcomings.
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