Micron Technology’s HBM Business Forecast to Drive Growth and Boost Stock Price Target

Investing.com lifts Micron Technology stock price target to $130 due to AI and HBM growth.

Micron Technology (NASDAQ:) is expected to see growth in the AI and High Bandwidth Memory (HBM) sectors, with Mizuho increasing its stock price target to $130, up from $124. The firm reiterated its Buy rating on the stock while updating its forecast for fiscal year 2024 to take into account new tax assumptions that align with Micron’s guidance.

Mizuho analysts have highlighted several key factors influencing the revised target. HBM pricing is expected to be locked in for 2024 but could see an upside towards the end of the year and into early 2025. A significant catalyst is foreseen with the introduction of a 12-Layer 36Gb HBM for a 288GB stack in the first half of 2025.

The market for HBM in 2024 and 2025 is projected to be worth approximately $9 billion and $13 billion, respectively, with the potential to increase to about $10-11 billion and $14-15 billion. This market is expected to grow at a compound annual growth rate (CAGR) of around 65% over three years, reaching approximately $17.5 billion by calendar year 2026.

Micron’s competitive edge in the HBM market is also noted, with its HBM3E offering comparable performance to peers but with around 30% lower power consumption and no extreme ultraviolet (EUV) lithography, leading to reduced costs.

The firm’s report concludes by reaffirming its Buy rating and increasing the stock price target to $130, with adjustments made to the estimates based on these insights.

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