Micron Technology: The AI Rally Continues to Fuel Growth

Micron Technology's shares have surged over 60% year to date, driven by an AI rally that shows no signs of slowing down. Following management meetings with analysts, the bullish sentiment surrounding the company's prospects has only intensified.

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Micron Technology: The AI Rally Continues to Fuel Growth

Micron Technology Inc. (NASDAQ:MU) shares have been on a tear, up over 60% year to date, driven by an AI rally that shows no signs of slowing down. Following management meetings with analysts in Boston and New York, the bullish sentiment surrounding the company’s prospects has only intensified.

A new era of AI computing and enterprise storage has arrived

Analysts from BofA Securities and Goldman Sachs, among others, have reiterated their Buy ratings and price targets, citing Micron Technology’s strong position in high bandwidth memory (HBM) and its expected growth in the AI computing and enterprise storage markets.

“The company’s key message was very bullish regarding pricing and mix shift towards differentiated AI computing and enterprise storage products,” said BofA Securities analyst Vivek Arya in a note. “Meanwhile, edge AI — phones and PCs — is just getting started and could become an incremental growth driver over the next few years.”

HBM revenue expected to reach multiple billion dollars in FY2025

Goldman Sachs analyst Toshiya Hari echoed the sentiment, stating that Micron Technology is set to improve its competitive position in HBM as well as in the overall DRAM and NAND industry supply/demand dynamics. The company expects to generate several hundred million dollars of HBM revenue in FY2024, which will step up materially to multiple billion dollars in FY2025.

Micron Technology’s position is further strengthened by its qualification at Nvidia Corp (NASDAQ:NVDA) for H200, with the company currently shipping and sold out (i.e., HBM bits have been allocated) for both CY2024 and CY2025, according to Hari.

AI-driven growth expected to propel Micron Technology forward

As the AI rally continues to fuel growth, Micron Technology is poised to benefit from its strong position in the HBM market and its expected growth in AI computing and enterprise storage. With analysts remaining bullish on the company’s prospects, the future looks bright for Micron Technology.