Micron’s Growing AI and HBM Market: Mizuho Raises Stock Price Target to $130

Investing.com raises Micron Technology stock price target to $130 on the back of AI and HBM growth

Mizuho recently expressed confidence in Micron Technology by raising its stock price target to $130, up from the previous $124, while maintaining its Buy rating on the stock. The firm’s updated forecast for fiscal year 2024 considers new tax assumptions aligning with Micron’s guidance and the anticipated growth in AI and High Bandwidth Memory (HBM) sectors.

Micron’s competitive advantage in the HBM market is 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.

The analyst pointed out several key factors influencing the revised target. They expect HBM pricing to be established for 2024 but may see an upside 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 is seen as a significant catalyst.

Mizuho estimates the HBM market to be worth around $9 billion in 2024 and $13 billion in 2025, potentially increasing to $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.

In conclusion, Mizuho reaffirms its Buy rating and increases the stock price target to $130, with adjustments made to the estimates to reflect these insights. This information was generated with AI support and reviewed by an editor.

Sophia Reynolds

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