Micron Technology is a key player in semiconductor industry with strong AI prospects.

From Nasdaq: 2024-12-21 05:25:00

The semiconductor industry, crucial for AI development, sees Micron Technology (MU) as a key player alongside Nvidia (NVDA). Micron’s data center revenue is up, with significant AI opportunities in smartphones and PCs. Micron’s memory chips are in high demand, with HBM3E solutions leading the industry and powering Nvidia’s latest AI chip.

Despite a 12% stock drop post-strong financials, Micron’s data center revenue is up 400% year-over-year, hitting $4.4 billion. The company’s mobile segment also shows growth, with AI driving demand for higher DRAM capacity. Micron’s profitability is rising, buoyed by the AI tailwind and careful expense management.

Wall Street analysts are bullish on Micron, with the majority assigning a buy rating. Predictions of $8.90 EPS for 2025 suggest a forward P/E ratio of 10.2, a 65% discount to Nvidia. Micron’s prospects are tied to Nvidia’s sales, making it a strong investment choice in the AI semiconductor space.

Consider investing in Micron for potential upside, as analysts have an average price target of $146.82, implying a 61% increase over the next 12-18 months. With a Street-high target of $250, the potential upside is 174%. Micron’s AI prospects and strong financial performance make it an attractive investment option for the new year.



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