Micron’s growth profile seems to be shifting as memory demand enters a new, more profitable phase. The stock is fifth on our list of 12 AI Stocks Wall Street Is Watching Now.
On May 11, D.A. Davidson reiterated the stock as “Buy” with a $1,000.00 price target. The firm believes Micron is a table-pounding buy.
Following up on our recent initiation after investor conversations, we have increased conviction around our BUY rating and $1,000 target. We are blissfully unencumbered by the memory industry’s past.
Micron (MU) Draws Bullish Call as AI Memory Demand Reshapes Growth Outlook
Source: Micron Technology
DA Davidson noted that there are many investors that still believe that Micron is still an old-style, highly cyclical business. However, artificial intelligence is changing this perspective. In fact, Micron’s business is becoming stronger owing to high-end HBM, the DRAM oligopoly, and longer-term contracts.
That said, investors are still underestimating “the new math of memory in the AI age,” and how much the new AI-driven memory cycle can benefit the stock.
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
While we acknowledge the potential of MU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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