Buy Alert: Why Micron Stock Will Keep Riding the AI Boom Higher

InvestorPlace05-09

Demand for Micron‘s (MU) most lucrative chips is soaring and MU stock still trade at low levels, making the chipmaker a buy for growth investors. Wall Street has become quite enthusiastic about ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2434067560?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-05-09 18:26","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2434067560","market":"us","top_or_hot":-1,"title":"Buy Alert: Why Micron Stock Will Keep Riding the AI Boom Higher","media":"InvestorPlace","content":"<div>\n<p>Demand for Micron‘s (MU) most lucrative chips is soaring and MU stock still trade at low levels, making the chipmaker a buy for growth investors.  \nWall Street has become quite enthusiastic about ...</p>\n\n<a href=\"https://investorplace.com/2024/05/buy-alert-why-micron-stock-will-keep-riding-the-ai-boom-higher/\">Source Link</a>\n\n</div>\n","source":"investorplace_stock_picks","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Buy Alert: Why Micron Stock Will Keep Riding the AI Boom Higher</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBuy Alert: Why Micron Stock Will Keep Riding the AI Boom Higher\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-09 18:26 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2024/05/buy-alert-why-micron-stock-will-keep-riding-the-ai-boom-higher/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Demand for Micron‘s (MU) most lucrative chips is soaring and MU stock still trade at low levels, making the chipmaker a buy for growth investors.  \nWall Street has become quite enthusiastic about ...</p>\n\n<a href=\"https://investorplace.com/2024/05/buy-alert-why-micron-stock-will-keep-riding-the-ai-boom-higher/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4506","symbol_name":"内地教育股","start_time":0,"source_url":"https://investorplace.com/2024/05/buy-alert-why-micron-stock-will-keep-riding-the-ai-boom-higher/","article_id":"2434067560","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2434067560","pubTimestamp":1715250360,"sourceInfo":{"source_id":"investorplace_stock_picks","name":"InvestorPlace stock picks"},"weMediaInfo":null,"summary":"Demand for Micron‘s  most lucrative chips is soaring and MU stock still trade at low levels, making the chipmaker a buy for growth investors.Wall Street has become quite enthusiastic about Micron’s prospects.The valuation of Micron Technology stock is very attractive.Also bullish on Micron Technology stock recently was Citi. Citing high DRAM prices and strong demand for the firm’s high-bandwidth memory, the bank on Apr. 5 predicted that Micron’s financial results would beat analysts’ average estimates going forward. In 2025, Micron’s “high-bandwidth memory-related sales” could reach $3 billion, according to the bank, which kept a $150 price target and a “buy” rating on","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4506":"内地教育股","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0792757196.USD":"TEMPLETON SHARIAH GLOBAL EQUITY FUND \"A\" (USD) ACC","LU0889566641.SGD":"FTSF - Templeton Shariah Global Equity A Acc SGD","BK4566":"资本集团","IE00B19Z3581.USD":"Legg Mason ClearBridge - Value A Acc USD","BK4575":"芯片概念","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","GOTU":"高途","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","MU":"美光科技","BK4527":"明星科技股","BK4579":"人工智能","BK4141":"半导体产品","BK4588":"碎股","BK4503":"景林资产持仓","BK4552":"Archegos爆仓风波概念","LU1267930813.SGD":"FRANKLIN TEMPLETON SHARIAH GLOBAL EQUITY \"AS\" (SGD) ACC","BK4510":"在线教育","BK4512":"苹果概念","IE0002270589.USD":"LEGG MASON CLEARBRIDGE VALUE \"A\" (USD) INC","LU2286300806.USD":"Allianz Cyber Security AT Acc USD","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","BK4554":"元宇宙及AR概念","BK4532":"文艺复兴科技持仓","LU1316542783.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD","BK4553":"喜马拉雅资本持仓","BK4204":"教育服务","IE00B7SZLL34.SGD":"Legg Mason ClearBridge - Value A Acc SGD-H","BK4531":"中概回港概念","BK4585":"ETF&股票定投概念"},"translate_title":"购买警报：为什么美光科技将继续乘着人工智能热潮走高","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MU":1,"GOTU":0.62},"content_text":"Demand for Micron‘s (MU) most lucrative chips is soaring and MU stock still trade at low levels, making the chipmaker a buy for growth investors.  \nWall Street has become quite enthusiastic about Micron’s prospects.\nThe valuation of Micron Technology stock is very attractive. \n \n\n\n\n \n\nSource: Charles Knowles / Shutterstock.com\n\n\n\nMicron Technology (NASDAQ:MU), which makes computer-memory chips, is benefiting from multiple, strong, positive catalysts. Among these drivers are the rapidly increasing demand for its products for use in artificial intelligence (AI) systems and new AI server chips that it has begun offering recently. The latter chips tend to be more profitable than its older products. \nAlso positively for Micron Technology stock, multiple Wall Street banks have issued very upbeat notes on the chipmaker in recent months, while the shares’ valuation remains quite low. Finally but importantly, the company reported superb quarterly results in March. Given these points, I recommend that growth investors buy the shares.\nAI Proliferation Is a Positive Growth Force\nThe proliferation of AI was one of the factors that boosted Micron’s financial results last quarter. That’s because the high demand for AI servers enabled the company to sell more chips for those devices, CEO Sanjay Mehrotra explained on the firm’s earnings call. Moreover, the intense interest in AI servers allowed the chipmaker to meaningfully raise the prices that it charges for the chips. As a result of these trends, memory-chip prices are likely to continue to rise throughout 2024, Mehrotra explained.\n In February, Micron announced that it began producing large amounts of its new high bandwidth chip, the High Bandwidth Memory 3E solution, also known as HBM3E. In a note to investors on May 6, investment bank Baird wrote that “HBM3E has the potential to generate 60%+ gross margin for Micron next year.” The company’s overall gross margin last quarter was only 18.5%. \nIn 2025, HBM3E ‘s sales could soar by 150%, causing it to generate 20% of the firm’s total dynamic random access memory revenue next year, according to Baird. With Micron selling much more of this high-margin chip in 2025, its overall profit margins and bottom line are likely to jump next year.\nThe Street is More Upbeat on MU Stock\nIn addition to the boost that Micron will receive from its HBM3E chip in 2025, the firm’s financial results are currently being lifted by high DRAM pricing, Baird noted. The bank raised its rating on Micron stock to “outperform” and hiked its price target on the shares to $150 from $115.  \nAlso bullish on Micron Technology stock recently was Citi. Citing high DRAM prices and strong demand for the firm’s high-bandwidth memory, the bank on Apr. 5 predicted that Micron’s financial results would beat analysts’ average estimates going forward. In 2025, Micron’s “high-bandwidth memory-related sales” could reach $3 billion, according to the bank, which kept a $150 price target and a “buy” rating on the chipmaker.\nFor its part, JPMorgan noted that the company’s supply of  HBM3e chips was already sold out for the remainder of this year and most of 2025. The bank increased its price target on the shares to $130 from $100 and kept an “overweight” rating on the name.\nExcellent Q3 Results and a Low valuation\nIn Micron’s fiscal Q2 that ended in February, its revenue jumped 58% versus the same period a year earlier, while its operating cash flow more than tripled to $1.4 billion versus $343 million during Q2 of the previous year. \nMicron Technology stock has soared 40% so far this year, but it nonetheless has a low forward price-earnings ratio of 16.8 times. \nOn the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines\nLarry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.Technology, SemiconductorGrowth Stocks \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nSubmit\n\n\n\n\n\n\n\nArticle printed from InvestorPlace Media, https://investorplace.com/2024/05/buy-alert-why-micron-stock-will-keep-riding-the-ai-boom-higher/.\n©2024 InvestorPlace Media, LLC","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2434067560"}