May 20, 2024 12:27 am raises Micron Technology stock price target to $130 on the back of AI and HBM growth

Micron Technology has recently received a boost from Mizuho, which raised its stock price target to $130 from $124. The firm maintained its Buy rating on the stock while updating its forecast for fiscal year 2024 to reflect new tax assumptions that align with Micron’s guidance and anticipated growth in AI and High Bandwidth Memory (HBM) sectors.

The analyst highlighted several key factors that influenced the revised target, including the expectation of HBM pricing being established by 2024 with an upside potential toward the end of the year and early 2025. Additionally, the introduction of a 12-Layer 36Gb HBM for a 288GB stack in the first half of 2025 was seen as a significant catalyst.

Mizuho estimates the HBM market to be worth around $9 billion in 2024 and $13 billion in 2025, potentially reaching $10-11 billion and $14-15 billion, respectively. The market is projected to grow at a compound annual growth rate of approximately 65% over three years, reaching $17.5 billion by 2026.

Micron’s competitive advantage in the HBM market was highlighted due to its HBM3E offering delivering comparable performance to competitors but with lower power consumption (around 30% less) and no extreme ultraviolet (EUV) lithography, resulting in reduced costs.

In conclusion, Mizuho reaffirms its Buy rating and increases the stock price target to $130, making adjustments based on these insights generated with AI support and reviewed by an editor.

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