Micron Technology: Bullish Outlook on High Bandwidth Memory Market

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

Micron Technology (NASDAQ:) has been in the spotlight for its potential growth in the High Bandwidth Memory (HBM) market, as predicted by Mizuho. The firm announced on Monday that it was raising its stock price target to $130 from $124, while reiterating its Buy rating on the stock. This new forecast takes into account new tax assumptions that align with Micron’s guidance and the anticipated growth in the AI and HBM sectors.

Mizuho highlighted several key factors influencing the revised target. One significant factor is an expectation that HBM pricing will be locked in for 2024 but could see an upside towards the end of the year and into early 2025. Additionally, a major 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 grow at a compound annual growth rate (CAGR) of around 65%, reaching approximately $17.5 billion by calendar year 2026. With this growth potential, Mizuho estimates that the market for HBM in these years could be worth approximately $9 billion and $13 billion, respectively, with the potential to increase to about $10-11 billion and $14-15 billion.

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. This competitive advantage is expected to continue driving growth in this sector.

In conclusion, Mizuho reaffirmed its Buy rating on Micron Technology’s stock while increasing its price target to $130. These adjustments reflect Micron’s strong positioning in

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