Micron Technology to Benefit From Tight Computer-Memory Market, RBC Says

MT Newswires Live01-16

Micron Technology (MU) will likely benefit from the current upswing in the computer- memory market amid surging AI demand and tighter industry supply, RBC Capital Markets said Wednesday in a report.

The favorable cycle is expected to continue well into next year, supported by limited manufacturing capacity and broader structural supply constraints, RBC said.

Micron is "sold out of its [high bandwidth memory] capacity, including HBM4, suggesting that recent investor concerns regarding the company's roadmap are overblown," the report said.

The company is also "executing well" across other product categories, which "should unlock further share gains," RBC said.

Micron's earnings per share reached $9.50 in the last cycle and $12.50 in 2018, and with the current environment expected to run through 2027, RBC projects EPS may surpass $50.

RBC initiated coverage of Micron stock with an outperform rating and $425 price target.

Price: 344.33, Change: +10.98, Percent Change: +3.29

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