From Nasdaq:

The PHLX Semiconductor Sector index has seen an 11% gain in 2024, driven by Nvidia, AMD, Broadcom, and Taiwan Semiconductor. Micron Technology, however, saw only a 5% increase until a recent 4% jump on Feb. 26. Micron stands to benefit from supplying chips for Nvidia’s H200 GPUs, expected to ship in Q2 2024.

Micron’s production of high bandwidth memory 3E chips for Nvidia’s upcoming processors has given the company a boost, with potential revenues reaching several hundred million dollars in fiscal 2024. With solid demand for H200 processors and plans to expand production capacity, Micron is poised for growth.

The rapidly expanding market for HBM, driven by demand from AI processors, could see Micron benefit significantly. Projected annual revenue for the HBM market is estimated to reach almost $20 billion in 2025. Micron’s revenue is expected to skyrocket to nearly $35 billion by fiscal 2026.

Trading at 6 times sales, Micron Technology shows potential for considerable growth, with revenue expected to more than double in three fiscal years. The company’s market capitalization could soar to $210 billion by fiscal 2026 if it maintains its growth trajectory, making it a compelling investment opportunity.

Investors should consider the potential upside Micron Technology offers, especially in the AI chip market where it stands to benefit from strong demand for HBM. With a premium valuation justified by growth prospects, Micron could see its market capitalization more than double in the coming years, making it a stock to watch.



Read more at Nasdaq: This Artificial Intelligence (AI) Stock Is About to Go on a Bull Run