Artificial intelligence (AI) is driving Micron Technology (MU) to record highs, with surging demand for memory chips from AI hyperscalers fueling its success. However, Samsung’s progress in producing next-gen HBM4 chips poses a threat to Micron’s dominance in the AI memory space.

Micron, a key supplier of memory products for data centers and AI infrastructure, plays a critical role in enabling AI workloads worldwide. Despite a recent dip in stock price due to Samsung’s advancements, Micron’s valuation remains attractive, trading at a discount to sector peers.

In its latest earnings report, Micron posted record revenue, driven by soaring sales of DRAM and NAND products. The company’s profitability also saw significant growth, with adjusted gross margin and EPS surpassing expectations. Micron is optimistic about continued strong demand in the AI-driven market.

Wall Street analysts maintain a “Strong Buy” rating on MU stock, with optimism for further upside potential. Despite already exceeding its average price target, the street-high target of $500 suggests a possible 21% increase. This indicates confidence in Micron’s AI-driven momentum moving forward.

Read more at Yahoo Finance: Competition Is Heating Up for Micron. Should You Buy, Sell, or Hold MU Stock Now?