Micron Technology’s shares rose by as much as 5% on Monday morning, thanks to a positive outlook from Wall Street analyst John Vinh. The KeyBanc analyst reaffirmed his buy rating on the chipmaker and raised the price target to $150 from $135, suggesting a potential upside of 21% compared to Friday’s closing price. This comes after Vinh conducted a supply chain review and expressed optimism about Micron’s future prospects.
After reviewing Micron’s HBM3E chip, Vinh noted that users have reported superior thermal and power performance compared to competitors. He believes this positions Micron well for significant revenue growth in the coming years. Additionally, Micron’s partnership with Nvidia last year has boosted demand for its products, with chips already sold out for 2024 and much of the 2025 supply accounted for.
Micron’s recent financial results show the positive impact of AI on the company, with a significant increase in revenue for the second fiscal quarter of 2024. The company is guiding for even more growth in the third quarter, with revenue expected to surge by 76% year over year. Despite the recent share price increase, Micron’s valuation remains reasonable, trading at around 4 times next year’s expected sales. With robust demand for AI driving the need for memory and storage solutions, Micron is well positioned for continued growth in the future.
